0000012614-95-000010.txt : 19950828
0000012614-95-000010.hdr.sgml : 19950828
ACCESSION NUMBER: 0000012614-95-000010
CONFORMED SUBMISSION TYPE: 10-Q
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 19950715
FILED AS OF DATE: 19950825
SROS: AMEX
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: BLESSINGS CORP
CENTRAL INDEX KEY: 0000012614
STANDARD INDUSTRIAL CLASSIFICATION: UNSUPPORTED PLASTICS FILM & SHEET [3081]
IRS NUMBER: 135566477
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1229
FILING VALUES:
FORM TYPE: 10-Q
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-04684
FILM NUMBER: 95566838
BUSINESS ADDRESS:
STREET 1: 200 ENTERPRISE DRIVE
CITY: NEWPORT NEWS
STATE: VA
ZIP: 23603
BUSINESS PHONE: 8048872100
MAIL ADDRESS:
STREET 1: 200 ENTERPRISE DRIVE
CITY: NEWPROT NEWS
STATE: VA
ZIP: 23603
FORMER COMPANY:
FORMER CONFORMED NAME: ASSOCIATED BABY SERVICES INC
DATE OF NAME CHANGE: 19720828
10-Q
1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 15, 1995
------------------------
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 1-4684
Blessings Corporation
(Exact name of registrant as specified in its charter)
Delaware 13-5566477
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 Enterprise Drive, Newport News, VA 23603
(Address of principal executive offices)
(Zip Code)
804 887 2100
(Registrant's telephone number, including area code)
None
(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 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 the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding as of August 15, 1995
----- ---------------------------------
Common stock, $.71 par value 10,131,488
BLESSINGS CORPORATION
INDEX
PAGE NUMBER
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets
July 15, 1995 and December 31, 1994 1
Consolidated Condensed Statements of
Earnings - twelve and twenty-eight
weeks ended July 15, 1995 and July 16, 1994 2
Consolidated Condensed Statements of
Cash Flows - twelve and twenty-eight
weeks ended July 15, 1995 and July 16, 1994 3
Notes to Consolidated Condensed
Financial Statements 4
Review by Independent Certified
Public Accountants 7
Independent Accountants' Report 8
Letter in Lieu of Consent of
Independent Public Accountants
9
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 10
PART II: OTHER INFORMATION
Item 2. Changes in Securities 13
Item 6. Exhibits and Reports on Form 8-K 13
PART I. FINANCIAL INFORMATION
BLESSINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
July 15, 1995 December 31, 1994*
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash & cash equivalents $ 3,029,800 $ 6,975,800
Accounts receivable less allowance for
doubtful accounts of $1,081,000 &
$1,170,700 19,846,700 21,253,500
Inventories 13,479,000 15,865,600
Prepaid deferred taxes 760,800 760,800
Prepaid expenses 537,100 1,425,400
------------ ------------
Total Current Assets 37,653,400 46,281,100
------------ ------------
Property, plant and equipment (less
accumulated depreciation & amortization
of $36,500,800 & $33,271,400) 70,212,800 75,021,700
Goodwill 25,436,100 25,966,200
Deferred taxes 4,628,800 2,173,700
Other assets 1,483,500 2,113,600
------------ ------------
Total Assets $139,414,600 $151,556,300
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 15,419,200 $ 23,504,800
Short-term bank note 3,000,000 --
Income taxes payable 1,776,600 1,960,200
Current installments on long-term debt 6,536,000 8,650,400
------------ ------------
Total Current Liabilities 26,731,800 34,115,400
------------ ------------
Long-term debt 24,221,700 26,475,800
Deferred taxes on income 7,322,500 7,103,700
Deferred supplemental pension liability 1,553,000 1,573,100
Minority interest 8,339,200 9,918,100
Shareholders' Equity:
Common stock 7,252,500 7,250,400
Additional paid in capital 6,204,300 6,196,100
Translation loss (4,931,700) (2,687,500)
Retained earnings 63,528,700 61,847,100
------------ ------------
72,053,800 72,606,100
Common stock in treasury at cost (807,400) (235,900)
------------ ------------
Total Shareholders' Equity 71,246,400 72,370,200
Total Liabilities and Shareholders' ------------ ------------
Equity $139,414,600 $151,556,300
============ ============
See Independent Accountants' Review Report and Notes to Consolidated Condensed
Financial Statements.
*The balance sheet at December 31, 1994 has been taken from audited Financial
Statements at that date, and condensed.
- -
BLESSINGS CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
12 Weeks Ended 12 Weeks Ended 28 Weeks Ended 28 Weeks Ended
July 15, 1995 July 16, 1994 July 15, 1995 July 16, 1994
Continuing Operations:
Net sales $38,729,000 $26,261,200 $83,785,600 $62,308,300
----------- ----------- ----------- -----------
Cost of sales 27,375,400 17,416,700 58,315,800 40,250,300
Selling, general and administrative 5,824,100 5,199,300 12,737,800 11,718,800
Foreign exchange (gain) loss (25,000) -- 2,937,700 --
Interest & dividends - net 584,900 203,900 1,216,800 402,200
----------- ----------- ----------- -----------
Total costs and expenses 33,759,400 22,819,900 75,208,100 52,371,300
----------- ----------- ----------- -----------
Earnings from continuing operations before prov-
ision for taxes on income and minority interest 4,969,600 3,441,300 8,577,500 9,937,000
----------- ----------- ----------- -----------
Taxes on income
Current 2,341,300 1,312,500 3,904,900 3,841,500
Deferred 13,500 24,600 40,700 57,500
----------- ----------- ----------- -----------
Total taxes 2,354,800 1,337,100 3,945,600 3,899,000
----------- ----------- ----------- -----------
Minority interest in net income of subsidiary 818,700 -- 914,600 --
----------- ----------- ----------- -----------
Net earnings from continuing operations 1,796,100 2,104,200 3,717,300 6,038,000
----------- ----------- ----------- -----------
Discontinued Operations:
Earnings from operation of discontinued
Geri-Care Products Division less applicable
taxes on income -- 49,400 -- 188,000
Profit on sale of discontinued Geri-Care Products
Division less applicable taxes on income -- 91,700 -- 91,700
----------- ----------- ----------- -----------
Net earnings from discontinued operations -- 141,100 -- 279,700
----------- ----------- ----------- -----------
Net earnings $ 1,796,100 $ 2,245,300 $ 3,717,300 $ 6,317,700
=========== =========== =========== ===========
Average number of shares of common
stock outstanding 10,164,954 9,903,652 10,188,174 9,826,946
=========== =========== =========== ===========
Common stock outstanding at close of period 10,151,121 10,170,318 10,151,121 10,170,318
=========== =========== =========== ===========
Earnings per share on common stock:
From continuing operations $ .17 $ .21 $ .36 $ .62
From operations of discontinued Geri-Care
Products Division -- .01 -- .02
Profit on sale of discontinued Geri-Care
Products Division -- .01 -- .01
----------- ----------- ----------- -----------
Net earnings per share $ .17 $ .23 $ .36 $ .65
=========== =========== =========== ===========
Dividends per share $ .10 $ .0875 $ .20 $ .1675
=========== =========== =========== ===========
See accompanying Notes to Consolidated Condensed Financial Statements.
BLESSINGS CORPORATION & SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
12 Weeks Ended 12 Weeks Ended 28 Weeks Ended 28 Weeks Ended
July 15, 1995 July 16, 1994 July 15, 1995 July 16, 1994
Cash flows from operating activities:
Net earnings from continuing operations $ 1,796,100 $ 2,104,200 $ 3,717,300 $ 6,038,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Earnings from discontinued operations -- 49,400 -- 188,000
Gain on sale of discontinued operations -- 91,700 -- 91,700
Depreciation and amortization 1,944,800 1,365,100 4,318,300 3,350,300
Goodwill 265,100 -- 530,100 --
Amortization - other 7,200 11,400 15,100 26,700
Minority interest in net income of con-
solidated subsidiary 818,700 -- 914,600 --
Provision for losses on accounts receivable 195,200 119,500 313,000 410,000
(Gain) loss on sale of assets 2,300 -- (3,600) --
Change in assets and liabilities:
(Increase) decrease in accounts receivable (2,873,300) 1,895,600 (578,600) 124,300
(Increase) decrease in inventories 1,125,100 (796,600) 1,515,300 (1,889,800)
(Increase) decrease in prepaid expenses 516,200 (793,900) 862,400 (934,000)
Increase (decrease) in accounts payable
& accrued expenses (2,509,000) 1,221,600 (5,583,000) 2,327,100
Increase (decrease) in taxes on income (321,900) (202,700) 17,400 859,600
Increase (decrease) in deferred taxes
on income 335,000 24,600 362,200 57,500
(Increase) decrease in other assets (449,100) (718,900) (656,800) (874,800)
Increase (decrease) in other liabilities 12,200 36,700 5,700 282,100
----------- ----------- ----------- -----------
Net cash provided by operating activities 864,600 4,407,700 5,749,400 10,056,700
----------- ----------- ----------- -----------
Cash flows from investing activities:
Proceeds from the sale of trading securities -- 6,300,000 -- 6,300,000
Proceeds from disposition of fixed assets 438,300 1,384,400 463,500 1,384,400
Capital expenditures (2,976,400) (3,614,600) (5,837,400) (7,731,000)
Payments made for the acquisition of Mexican
subsidiary net of cash received -- (39,310,800) -- (39,310,800)
----------- ----------- ----------- -----------
Net cash required by investing activities (2,538,100) (35,241,000) (5,373,900) (39,357,400)
----------- ----------- ----------- -----------
Cash flows from financing activities:
Short-term borrowings 4,400,000 2,000,000 4,400,000 2,000,000
Reduction of long term debt (2,072,400) (758,300) (5,015,000) (2,275,000)
Increase in long-term debt -- 25,000,000 -- 25,000,000
Issuance of common stock under stock
option plan -- -- 30,800 94,400
Issuance and acquisition of treasury stock
- net (658,400) -- (591,900) 133,600
Dividends paid (1,020,700) (854,300) (2,041,300) (1,635,700)
----------- ----------- ----------- -----------
Net cash prov. (req.) by financing activities 648,500 25,387,400 (3,217,400) 23,317,300
----------- ----------- ----------- -----------
Effect of exchange rate changes on cash 311,500 -- (1,104,100) --
----------- ----------- ----------- -----------
Net incr. (decr.) in cash and cash equivalents (713,500) (5,445,900) (3,946,000) (5,983,400)
Cash and cash equivalents at beginning of period 3,743,300 9,727,300 6,975,800 10,264,800
----------- ----------- ----------- -----------
Cash and cash equivalents at end of period $ 3,029,800 $ 4,281,400 $ 3,029,800 $ 4,281,400
=========== =========== =========== ===========
See Independent Accountants' Review Report and Notes to Consolidated Condensed Financial Statements.
BLESSINGS CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS
(See Independent Accountants' Report)
1. The consolidated condensed balance sheet as of July 15, 1995, the
consolidated condensed statements of earnings for the twelve and
twenty-eight week periods ended July 15, 1995, and July 16, 1994, and
the consolidated condensed statements of cash flows for the twelve and
twenty-eight week periods then ended have been prepared by the company
without audit. Nacional de Envases, S.A. de C.V. (NEPSA), the company's
60% owned Mexican subsidiary prepares its financial statements monthly.
Consequently, NEPSA's second quarter ended June 30, 1995. In the
opinion of management, all adjustments (consisting only of normal
recurring accruals) necessary to present fairly the financial position,
results of operations and cash flows at July 15, 1995, and for all
periods presented have been made. The company considers all highly
liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents. For accounting policies, see Notes to
Consolidated Financial Statements in the company's Annual Report to
Shareholders for the fiscal year ended December 31, 1994.
2. The company translates foreign currency financial statements by
translating balance sheet accounts at the current exchange rate and
income statement accounts at the average exchange rate for the quarter.
Translation gains and losses are recorded in shareholders' equity, and
transaction gains and losses are reflected in income.
3. The results of operations for the twenty-eight weeks ended July 15,
1995 are not necessarily indicative of the results to be expected for
the full year.
4. Inventories July 15, 1995 December 31, 1994
------------- -----------------
Raw Materials $ 9,212,900 $ 12,464,900
Finished Goods 4,266,100 3,400,700
------------ ------------
$ 13,479,000 $ 15,865,600
============ ============
Inventories are stated at the lower of cost or market. The cost of
inventories is determined by the first-in, first-out method (FIFO).
5. Long-term debt:
July 15, 1995 December 31, 1994
------------- -----------------
Long-term debt consists of the following:
Georgia Loan $ 2,500,000 $ 3,250,000
Virginia Loan 3,000,000 3,900,000
6% Term Loan 416,700 1,041,700
NEPSA Credit Agreement 21,875,000 23,437,500
Mexico Bank Loans 2,966,000 3,497,000
------------ ------------
$ 30,757,700 $ 35,126,200
Less installments due within one year 6,536,000 8,650,400
------------ ------------
Due after one year $ 24,221,700 $ 26,475,800
============ ============
For further details, see Note 6 of the Annual Report to Shareholders
for the fiscal year ended December 31, 1994.
6. Shareholders' Equity
During the twenty-eight weeks ended July 15, 1995, shareholders' equity
increased as follows:
Net earnings $ 3,717,300
Dividends declared (2,035,800)
Issuance of common stock under stock option plan 30,800
Issuance and acquisition of treasury stock - net (591,900)
Translation loss (2,244,200)
-----------
Total decrease in shareholders' equity $(1,123,800)
===========
7. Interest and Dividends - Net
12 Weeks Ended 12 Weeks Ended
July 15, 1995 July 16, 1994
------------- -------------
Interest expense $ 789,100 $ 307,600
Interest income (204,200) (90,800)
Dividend income -- (12,900)
---------- ----------
Total interest and
dividends - net $ 584,900 $ 203,900
========== ==========
28 Weeks Ended 28 Weeks Ended
July 15, 1995 July 16, 1994
------------- -------------
Interest expense $1,600,500 $ 638,900
Interest income (383,700) (212,300)
Dividend income -- (24,400)
---------- ----------
Total interest and
dividends - net $1,216,800 $ 402,200
========== ==========
8. During the twelve and twenty-eight week periods ending July 15, 1995,
the effective tax rate was 47.4% and 46.0% respectively compared to
38.9% and 39.2% respectively during the twelve and twenty-eight week
periods ending July 16, 1994. Income taxes have been computed based on
the estimated annual effective tax rate.
9. The purchase of NEPSA on July 5, 1994, resulted in $26,505,300 of
goodwill. This amount will be amortized on a straight-line basis over
its estimated life of 25 years.
10. On August 5, 1994 the company sold the assets of the Geri-Care Products
Division. Geri-Care's net results for the first half of 1994 are
reflected under Discontinued Operations. During the first half of 1994
the division reported net sales of $7,450,900 and pre-tax earnings of
$457,700.
11. Cash payments for interest and income taxes were:
12 Weeks Ended 12 Weeks Ended
July 15, 1995 July 16, 1994
------------- -------------
Interest $ 762,200 $ 274,200
Income tax $2,261,200 $1,605,100
28 Weeks Ended 28 Weeks Ended
July 15, 1995 July 16, 1994
------------- -------------
Interest $1,631,100 $ 595,000
Income tax $3,619,200 $3,146,700
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
The Consolidated Condensed Financial Statements as of July 15, 1995 and for the
twelve and twenty-eight week periods then ended have been reviewed prior to
filing by Deloitte & Touche LLP, Independent Certified Public Accountants, in
accordance with established professional standards and procedures for such a
review.
The report of Deloitte & Touche LLP commenting upon their review is included as
Part I - Exhibit 1.
Independent Accountants' Report
To the Board of Directors
Blessings Corporation
Newport News, Virginia
We have reviewed the accompanying consolidated condensed balance sheet of
Blessings Corporation and subsidiaries as of July 15, 1995, and the related
consolidated condensed statements of earnings and cash flows for the twelve and
twenty-eight weeks ended July 15, 1995 and July 16, 1994. These financial
statements are the responsibility of the Corporation's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to such consolidated condensed financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Blessings Corporation and
subsidiaries as of December 31, 1994, and the related consolidated statements of
earnings, shareholders' equity, and cash flows for the year then ended (not
presented herein) and in our report dated March 1, 1995, we expressed an
unqualified opinion on those consolidated financial statements. In our opinion,
the information set forth in the accompanying consolidated condensed balance
sheet as of December 31, 1994 is fairly stated, in all material respects, in
relation to the consolidated balance sheet from which is has been derived.
Deloitte & Touche LLP
Richmond, Virginia
August 9, 1995
August 9, 1995
Board of Directors
Blessings Corporation
Newport News, Virginia
We have made a review, in accordance with standards established by the American
Institute of Certified Public Accountants, of the unaudited interim financial
information of Blessings Corporation and subsidiaries for the twelve and
twenty-eight weeks ended July 15, 1995 and July 16, 1994, as indicated in our
report dated August 9, 1995; because we did not perform an audit, we expressed
no opinion on that information.
We are aware that our report referred to above, which is included in your
Quarterly Report on Form 10-Q for the quarter ended July 15, 1995, is
incorporated by reference in the Registration Statement (Post-Effective
Amendment Number 11 to Form S-8 on Form S-3).
We also are aware that the aforementioned report, pursuant to Rule 436(c) under
the Securities Act, is not considered a part of the Registration Statement
prepared or certified by an accountant or a report prepared or certified by an
accountant within the meaning of Sections 7 and 11 of that Act.
Deloitte & Touche, LLP
Richmond, Virginia
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SUMMARY:
The following tables set forth for the period indicated 1) the amounts and percentages which certain items reflected in
the financial data bear to net sales of the Company and 2) the percentage increase (decrease) of such items as compared to the
indicated prior period:
Relationship to Net Sales Percent
Period Ended Increase/(Decrease)
--------------------------------------------------------------- -------------------
July 15, 1995 Percent July 16, 1994 Percent 1995/1994
------------- ------- ------------- ------- ---------
Net Sales $38,729,000 100.0 $26,261,200 100.0 47.5
Cost of sales 27,375,400 70.7 17,416,700 66.3 57.2
----------- ----- ----------- -----
Gross margin 11,353,600 29.3 8,844,500 33.7 28.4
Other costs and
expenses 6,384,000 16.5 5,403,200 20.6 18.2
----------- ----- ----------- -----
Earnings from continu-
ing operations before
taxes on income and
minority interest 4,969,600 12.8 3,441,300 13.1 44.4
Taxes on income 2,354,800 6.1 1,337,100 5.1 76.1
----------- ----- ----------- -----
Minority interest in net
income of subsidiary 818,700 2.1 -- N/A N/A
----------- ----- ----------- ------
Net earnings from contin-
uing operations 1,796,100 4.6 2,104,200 8.0 (14.6)
Profit from discontinued
operations -- -- 141,100 .5 N/A
----------- ----- ----------- ------
Net earnings $ 1,796,100 4.6 $ 2,245,300 8.5 (20.0)
=========== ===== =========== ===== =======
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Relationship to Net Sales Percent
Period Ended Increase/(Decrease)
----------------------------------------------------------------- -------------------
28 Weeks Ended 28 Weeks Ended
July 15, 1995 Percent July 16, 1994 Percent 1995/1994
------------- ------- ------------- ------- ---------
Net Sales $83,785,600 100.0 $62,308,300 100.0 34.5
Cost of sales 58,315,800 69.6 40,250,300 64.6 44.9
----------- ----- ----------- -----
Gross margin 25,469,800 30.4 22,058,000 35.4 15.5
Other costs and
expenses 16,892,300 20.2 12,121,000 19.5 39.4
----------- ----- ----------- -----
Earnings from continu-
ing operations before
taxes on income and
minority interest 8,577,500 10.2 9,937,000 15.9 (13.7)
Taxes on income 3,945,600 4.7 3,899,000 6.3 1.2
----------- ----- ----------- -----
Minority interest in net
income of subsidiary 914,600 1.1 -- N/A N/A
----------- ----- ----------- -----
Net earnings from contin-
uing operations 3,717,300 4.4 6,038,000 9.7 (38.4)
Profit from discontinued
operations -- -- 279,700 .4 N/A
----------- ----- ----------- -----
Net earnings $ 3,717,300 4.4 $ 6,317,700 10.1 (41.2)
=========== ===== =========== ===== ======
RESULTS OF OPERATIONS:
Net Sales:
Net sales increased by 47.5% compared to the same quarter last year and
34.5% compared to the first half of 1994. The increase was the result of the
consolidation of net sales from Nacional de Envases, S.A. de C.V. (NEPSA). The
purchase of 60% of NEPSA was effective on July 5, 1994. Consequently there were
no sales incorporated into the company's results during the first half of 1994.
Domestic sales were down by 6% from the prior year's first half due primarily to
a general trend by diaper manufacturers to purchase thinner gauge diaper
backsheet materials. Demand in Mexico improved during the second quarter when
compared to the first quarter of this year but was still behind budgeted levels
due primarily to the peso devaluation and the resulting recession in that
country.
Improvements are anticipated from the first half's results as new
product applications currently in the development stages come to market and
stability continues in the Mexican economy.
Operating Costs and Expenses:
Gross margin declined from the unusually high 1994 first half results
by 5.0 percentage points. This decline was the result of the company's inability
to pass through all the polyolefin price increases which have occurred since the
first quarter last year and the weaker demand for film products discussed above.
The company has instituted rigid cost controls in an effort to recapture some of
this margin erosion. Other costs and expenses have remained relatively constant
as a percent of sales despite the inclusion of $2,937,700 of foreign exchange
loss, $530,100 of goodwill amortization and $948,100 of increased interest
expense associated with the purchase of NEPSA in the first half's results.
Taxes on Income:
The effective tax rate for the first half was 46.0% compared to 39.2%
for the first half of last year. The increase was primarily the result of a
higher effective tax rate associated with NEPSA and the related non-deductible
goodwill amortization.
Liquidity and Capital Resources:
As of July 15, 1995, the company had working capital of $10,921,600
compared to $12,165,700 at year-end, a decrease of $(1,244,100). The ratio of
current assets to current liabilities at the end of the quarter and at year-end
was 1.4 to 1. The company was not utilizing any of its $6 million revolving
credit line. However, the company was utilizing $3 million of its $7 million
short-term credit at July 15, 1995. The company is currently projecting that the
$3 million short-term loan will not be outstanding at the end of the year.
PART II. OTHER INFORMATION
Item 2. CHANGES IN SECURITIES
Long-term debt agreements contain various restrictive
covenants limiting the incurrence of additional indebtedness,
mergers and acquisitions. The agreements also include
quarterly tests relating to the maintenance of working
capital, equity, and fixed charge and interest coverage
ratios.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: A report by Independent Certified Public
Accountants filed in Part I.
(b) Reports on Form 8-K: There were no reports on
Form 8-K for the twelve weeks ended July 15, 1995.
S I G N A T U R E S
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this to be signed on its behalf by the undersigned
thereunto duly authorized.
BLESSINGS CORPORATION
DATED: August 25, 1995 /s/Wayne A. Durboraw
--------------- ------------------------------------------
Wayne A. Durboraw, Controller
DATED: August 25, 1995 /s/James P. Luke
--------------- ------------------------------------------
James P. Luke, Executive Vice President
(Principal Financial Officer)
EX-27
2
5
3-MOS
DEC-30-1995
APR-23-1995
JUL-15-1995
3,029,800
0
20,927,700
1,081,000
13,479,000
37,653,400
106,713,600
36,500,800
139,414,600
26,731,800
24,221,700
7,252,500
0
0
63,993,900
139,414,600
38,729,000
38,729,000
27,375,400
33,759,400
6,384,000
1,081,000
584,900
33,759,400
2,354,800
1,796,100
0
0
0
1,796,100
.17
.17