-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, p9DVG2zgy8ZIpm5s+yJFjypG3uAUp0V8OdFQaTSIpPf0zmj2CQRc0XcrIrjPE/PE a/TvvMIeFZcKPiagieJr1w== 0000912057-94-001337.txt : 19940414 0000912057-94-001337.hdr.sgml : 19940414 ACCESSION NUMBER: 0000912057-94-001337 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940228 FILED AS OF DATE: 19940413 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BINKS MANUFACTURING CO CENTRAL INDEX KEY: 0000012180 STANDARD INDUSTRIAL CLASSIFICATION: 3560 IRS NUMBER: 360808480 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01416 FILM NUMBER: 94522454 BUSINESS ADDRESS: STREET 1: 9201 W BELMONT AVE CITY: FRANKLIN PARK STATE: IL ZIP: 60131 BUSINESS PHONE: 7086713000 MAIL ADDRESS: STREET 1: 9201 WEST BELMONT AVENUE CITY: FRANKLIN PARK STATE: IL ZIP: 60131 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ----------------- FORM 10-Q (Mark One) /X/ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of l934 For the quarterly period ended February 28, 1994 or / / Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From _________ to __________ Commission file number 1-1416 BINKS MANUFACTURING COMPANY ---------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 36-0808480 - --------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 9201 WEST BELMONT AVENUE, FRANKLIN PARK, ILLINOIS 60131 ------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code 708-671-3000 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 ----- ----- The number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report: Class Outstanding February 28, 1994 - ----------------------- ----------------------------- Common, par value $1.00 3,088,837 PART I - FINANCIAL INFORMATION SUMMARIZED FINANCIAL STATEMENTS Company or group of companies for which report is filed: Binks Manufacturing Company and Consolidated Subsidiaries CONSOLIDATED BALANCE SHEETS FEBRUARY 28, 1994 (UNAUDITED) AND NOVEMBER 30, 1993
Feb 28 Nov 30 1994 1993 --------- -------- ($000 omitted) ASSETS Current assets: Cash and cash equivalents $ 12,591 10,164 Receivables, net 63,687 61,689 Inventories 71,343 70,899 Other current assets 2,816 2,786 -------- -------- Total current assets 150,437 145,538 Investments and other assets 5,368 5,420 Goodwill 2,842 2,863 Property, plant and equipment, at cost 55,219 54,789 Less accumulated depreciation 29,156 28,611 -------- -------- Net property, plant and equipment 26,063 26,178 -------- -------- TOTAL ASSETS $ 184,710 179,999 -------- -------- -------- --------
-1- PART I - FINANCIAL INFORMATION SUMMARIZED FINANCIAL STATEMENTS (Continued) Company or group of companies for which report is filed: Binks Manufacturing Company and Consolidated Subsidiaries CONSOLIDATED BALANCE SHEETS FEBRUARY 28, 1994 (UNAUDITED) AND NOVEMBER 30, 1993
Feb 28 Nov 30 1994 1993 --------- -------- ($000 omitted) LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable, bank overdrafts and current maturities of long-term debt $ 3,002 2,374 Accounts payable 41,086 38,209 Other current liabilities 10,207 13,715 -------- -------- Total current liabilities 54,295 54,298 Deferred compensation 7,615 6,403 Deferred income taxes 258 381 Deferred revenue 12 13 Long-term debt, less current maturities 36,989 34,136 -------- -------- Total liabilities 99,169 95,231 -------- -------- Stockholders' equity: Capital stock, $l.00 par value. Authorized 12,000,000 shares; issued 3,088,837 shares 3,089 3,089 Additional paid-in capital 24,505 24,505 Retained earnings 61,838 61,420 Foreign currency translation adjustment (3,891) (4,246) -------- -------- Total stockholders' equity 85,541 84,768 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 184,710 179,999 -------- -------- -------- --------
-2- Binks Manufacturing Company and Consolidated Subsidiaries CONSOLIDATED STATEMENTS OF EARNINGS THREE MONTHS ENDED FEBRUARY 28, 1994 AND FEBRUARY 28, 1993 (Unaudited)
For the three months ended ----------------------- Feb 28 Feb 28 1994 1993 --------- -------- ($000 omitted) Net sales $ 53,240 47,140 Cost of goods sold 36,098 30,172 ------- ------- Gross profit 17,142 16,968 Selling, general and administrative expenses 15,395 15,275 ------- ------- Operating income 1,747 1,693 ------- ------- Other expenses (income): Interest expense 615 681 Contribution to employees' profit sharing funds 36 - Other expense (income), net ( 30) 6 ------- ------- 621 687 Earnings before income taxes and equity in earnings (loss) of unconsolidated subsidiaries 1,126 1,006 Income taxes 399 341 ------- ------- Earnings before equity in earnings (loss) of unconsolidated subsidiaries 727 665 Equity in earnings (loss) of unconsolidated subsidiaries - ( 50) ------- ------- Net earnings $ 727 615 ------- ------- ------- ------- Net earnings per share $ .24 .20 ------- ------- ------- ------- Cash dividends declared per share $ .10 .25 ------- ------- ------- -------
-3- Binks Manufacturing Company and Consolidated Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED FEBRUARY 28, 1994 AND FEBRUARY 28, 1993 (Unaudited)
1994 1993 -------- ------- ($000 omitted) Cash flows from operating activities: Net earnings $ 727 615 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 838 837 Equity in (earnings) loss of unconsolidated subsidiaries - 50 Deferred compensation, net of payments 105 90 Deferred income taxes ( 17) ( 26) Other, net ( 71) ( 40) Cash provided by (used in) changes in: Receivables (2,415) ( 781) Inventories ( 266) ( 328) Other current assets ( 191) 103 Accounts payable 3,831 (1,055) Accrued employees' profit-sharing contributions ( 251) ( 31) Accrued expenses (2,594) (3,194) Income taxes 67 ( 334) ------- ------ Net cash provided by (used in) operating activities ( 237) (4,094) ------- ------ Cash flows from investing activities: Purchase of property, plant and equipment ( 694) ( 361) Proceeds from sale of equipment 41 7 Purchase of other investments and assets ( 60) ( 92) ------- ------ Net cash provided by (used in) investing activities ( 713) ( 446) ------- ------ Cash flows from financing activities: Proceeds from long-term borrowings 18,000 - Dividends paid ( 309) - Net increase (decrease) in commercial paper, notes payable and bank overdrafts 751 3,190 Principal payments on long-term debt (15,174) ( 218) ------- ------ Net cash provided by (used in) financing activities 3,268 2,972 ------- ------ Effect of exchange rate changes on cash 109 ( 185) ------- ------ Net increase (decrease) in cash and cash equivalents 2,427 (1,753) Cash and cash equivalents at beginning of period 10,164 7,652 ------- ------ Cash and cash equivalents at end of period $ 12,591 5,899 ------- ------ ------- ------
-4- Binks Manufacturing Company and Consolidated Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FEBRUARY 28, 1994 (UNAUDITED) AND NOVEMBER 30, 1993 NOTE 1 The accompanying financial statements are unaudited, but in the opinion of management include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of operations and financial position for the applicable period. Results of operations for any interim period are not necessarily indicative of results for any other period or for the full year. These interim financial statements should be read in conjunction with the financial statements and related notes contained in the Annual Report on Form 10-K for the year ended November 30, 1993. NOTE 2 On July 2, 1993, a judgment was entered against the Company in a civil action instituted by Graco, Inc. in the United States District Court in Houston, Texas, alleging infringement of a U.S. Patent held by Graco. The judgment provides for a total award of $2.75 million against the Company. The Company is appealing the judgment and has furnished an appeal bond in an amount equal to the judgment which has been secured by a letter of credit. After consulting with counsel, the Company has determined that it is not possible at this time to estimate the amount of damages, if any, that may ultimately be incurred. Accordingly, no provision has been made in the accompanying consolidated financial statements. -5- Binks Manufacturing Company and Consolidated Subsidiaries MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES Revenue generated from operations constitutes the primary source of the Company's liquidity. Short-term funds are also provided for current operations through bank loans and the issuance of bankers acceptances. The Company maintains substantial lines of credit for general corporate purposes and to provide support for the issuance of bankers acceptances. The unused lines of credit were approximately $23,545,000 at February 28, 1994. The Company's cash balances increased $2,427,000 in the quarter ended February 28, 1994. The net increase was the result of $237,000 used in operations due to higher sales volumes, $713,000 used for investing activities principally for purchases of property, plant and equipment, $3,268,000 provided by financing activities from the net increase in borrowings as more fully described below and a $109,000 increase based on the changes in foreign exchange rates during the quarter. On November 30, 1993 the Company agreed to issue $15,000,000 of 7.14% senior notes with a final maturity in 2008. Funding of the notes took place on December 6, 1993, and the proceeds were used to repay a portion of the debt outstanding under one of the Company's lines of credit. The Company will repay the principal in 11 annual installments beginning in 1998. A dividend was paid February 22, 1994, at the rate of $.10 per share, to stockholders of record February 11, 1994. RESULTS OF OPERATIONS Net sales in the first quarter of 1994 amounted to $53,240,000, an increase of 13% or $6,100,000 as compared to the first quarter of 1993. The Company's operations in France registered a $6 million sales increase and the Company's North American operations generated $2 million in additional sales which were partially offset by sales decreases at the Company's other European and Asian operations. Gross profit increased 1% to a total of $17,142,000 for the first quarter ended February 28, 1994, as compared to the first quarter in 1993 mainly due to the higher sales. The gross profit percentage decreased to 32% in 1994 from 36% in 1993 due to the lower margins inherent in the large installations responsible for the 1994 sales increase. Selling, general and administrative expenses increased $120,000 or less than 1% as compared to the first quarter in 1993. As a percentage of net sales, these expenses decreased to 29% in 1994 from 32% in 1993. Interest expense decreased $66,000 when compared to the first quarter in 1993 because of reductions in short term borrowings. The percentage of income taxes to pretax earnings was 35% in the first quarter of 1994 as compared with 34% in 1993. The change relates to the geographic mix of profitability. -6- PART II - OTHER INFORMATION Items 1 through 5 Not applicable Item 6 (a) None (b) None 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. BINKS MANUFACTURING COMPANY /s/ Jeffrey W. Lemajeur ------------------------------------- Jeffrey W. Lemajeur, Treasurer /s/ Burke B. Roche ------------------------------------- Burke B. Roche, President Date April 12, 1994 --------------------- -7- -----END PRIVACY-ENHANCED MESSAGE-----