-----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, ByUqlHO7Q1GpqG1Uo3l/VZUk6MbF+WJPsRzz2hh4Xhafogtqef9uVawomaQZobwB J49vYByXL4P6PfPz83m5Iw== 0000012654-96-000015.txt : 19961115 0000012654-96-000015.hdr.sgml : 19961115 ACCESSION NUMBER: 0000012654-96-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLOCK DRUG CO INC CENTRAL INDEX KEY: 0000012654 STANDARD INDUSTRIAL CLASSIFICATION: PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844] IRS NUMBER: 221375645 STATE OF INCORPORATION: NJ FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06436 FILM NUMBER: 96660909 BUSINESS ADDRESS: STREET 1: 257 CORNELISON AVE CITY: JERSEY CITY STATE: NJ ZIP: 07302 BUSINESS PHONE: 2014343000 MAIL ADDRESS: STREET 1: 257 CORNELISON AVENUE CITY: JERSEY CITY STATE: NJ ZIP: 07302 10-Q 1 BLOCK DRUG CO.FORM 10-Q, 3 MONTHS ENDED12/31/95 SECURITIES AND EXCHANGE COMMISSSION WASHINGTON, D.C. 20549 _________________________________ Form 10-Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the Three Months Ended Commission File number 0-6436 September 30, 1996 _________________________BLOCK DRUG COMPANY, INC._________________________ (Exact name of registrant as specified in its charter) ___New Jersey_________________________________________________22-1375645__ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 257 Cornelison Avenue, Jersey City, N.J._______________________07302______ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (201) 434-3000 Indicate by check mark whether the registrant (1) has filed all Commission 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 periods that the registrant is 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 close of the period covered by this report. _____Class______________ Outstanding_at_September 30,_1996 Common Stock - Class A 13,130,772 Common Stock - Class B 7,704,400 1 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q SEPTEMBER 30, 1996 ____________________________ Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - September 30, 1996 and March 31, 1996 2 Consolidated Statements of Income for the three and six months ended September 30, 1996 and 1995 3 Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 1996 and 4 and 1995. Notes to Consolidated Financial Statements 5 Management's Discussion and Analysis of Operating Results and Financial Condition 6 - 7 Part II - Other Information 8 2 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) ASSETS __09/30/96__ __03/31/96__ Current Assets: Cash $ 19,540,000 $ 16,388,000 Marketable securities,at market 9,020,000 13,433,000 Accounts receivable, less allowances of $4,447,000 (9/30/96) and $4,188,000 (3/31/96) 183,000,000 124,816,000 Inventories: Raw & packaging materials 50,593,000 42,868,000 Finished goods 90,804,000 81,500,000 Other current assets ___67,442,000 __33,200,000 Total Current Assets 420,399,000 312,205,000 Property,plant and equipment, less accumulated depreciation of $116,460,000 (9/30/96) and $114,724,000 (3/31/96) 246,824,000 242,552,000 Long term securities at market 227,134,000 222,667,000 Goodwill and other intangible assets- net of amortization 131,243,000 127,047,000 Other assets ___ 7,828,000 __24,646,000 Total Assets $1,033,428,000 $929,117,000 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Notes and bonds payable $ 97,392,000 $75,559,000 Accounts payable & accrued expenses 170,012,000 118,273,000 Income taxes payable 17,766,000 7,751,000 Dividends payable ____4,577,000 __4,572,000 Total Current Liabilities 289,747,000 206,155,000 Notes and bonds payable 59,140,000 56,143,000 Deferred compensation and other payables 14,787,000 15,364,000 Deferred income taxes ___11,814,000 _10,413,000 Total Liabilities __375,488,000 288,075,000 Shareholders' Equity: Class A common stock, non-voting, par value $.10-15,000,000 shares authorized, 13,130,772 (9/30/96) and 13,111,962 (3/31/96) shares issued and outstanding 1,313,000 1,311,000 Class B common stock par value $.10- 30,000,000 shares authorized, 7,704,400 (1995 & 1994) shares issued and outstanding 770,000 770,000 Capital in excess of par value 217,940,000 219,207,000 Retained earnings 437,726,000 416,200,000 Cumulative foreign currency translation adjustment (3,634,000) (2,476,000) Unrealized holding gain on marketable securities ____3,825,000 _ 6,030,000 Total Shareholders' Equity __657,940,000 _641,042,000 Total Liabilities & Shareholders' Equity $1,033,428,000 $929,117,000 ============= ============
-2- See notes to consolidated financial statements. 3 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE_MONTHS_ENDED SIX_MONTHS_ENDED SEPTEMBER_30, SEPTEMBER_30, _1996_____________1995____ _____1996________1995___ Revenues: Net sales $203,523,000 $172,234,000 $409,030,000 $351,044,000 Interest, dividends and other income ___8,678,000 ___8,222,000 __14,245,000 __16,614,000 _212,201,000 _180,456,000 _423,275,000 _367,658,000 Cost and Expenses: Cost of goods sold 63,527,000 58,661,000 128,035,000 114,341,000 Selling, general and administrative _127,273,000 _105,617,000 _251,849,000 _219,213,000 _ 190,800,000 _164,278,000 _379,884,000 _333,554,000 Income from continuing operations before income taxes 21,401,000 16,178,000 43,391,000 34,104,000 Income Taxes __6,139,000 ___3,279,000 12,714,000 __6,957,000 Income from continuing operations _15,262,000 __12,899,000 _30,677,000 __27,147,000 Discontinued operations(Note 2) Income from disconti- nued operations net of taxes of $32,000(1995) 52,000 Gain(loss) on sale of division,net of taxes of $26,328,000(1995) (79,000) 42,957,000 ----------- ----------- ---------- ---------- Income (loss)from discontinued operations (79,000) 43,009,000 ------------ ----------- ---------- ---------- Net income $15,262,000 $12,820,000 $30,677,000 $70,156,000 ============= =========== =========== ========== Average number of shares outstanding 20,829,180 20,791,584 20,824,438 20,785,429 ------------- ---------- ---------- ---------- Earnings per share: From continuing operations $ 0.73 $ 0.62 $ 1.47 $ 1.31 From discontinued operations 2.07 ----------- ---------- ----------- ----------- Net earnings $ 0.73 $ 0.62 $ 1.47 $ 3.38 =========== ========== ============ =========== Cash dividends per share Class A $ 0.29 $ 0.27 $ 0.58 $ 0.54 Class B $ 0.10 $ 0.10 $ 0.20 $ 0.10
-3- See notes to consolidated financial statements 4 BLOCK DRUG COMPANY INC.AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED SEPTEMBER 30 _____1996_________1995____ CASH_FLOW_FROM_OPERATING_ACTIVITIES $ 11,223,000 $ 596,000 CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of business segment 90,000,000 Additions to property, plant & equipment (19,655,000) (13,871,000) Proceeds from sale of property 5,200,000 Proceeds from sales of long-term securities 4,944,000 18,002,000 Purchases of long-term securities (10,293,000) (25,858,000) Decrease in marketable securities 2,686,000 3,800,000 Payment for products acquired (6,657,000) (7,472,000) -------------- ----------- Net cash (used in) provided by investing activities (23,775,000) 64,601,000 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to shareholders ( 9,151,000) ( 7,509,000) Payments of notes payable ( 5,625,000) ( 4,380,000) Additions to long-term debt 2,997,000 Increase (decrease) in short-term debt 27,458,000 (59,335,000) ------------ ------------ Net cash provided by (used in) financing activities 15,679,000 (71,224,000) Effect of exchange rates on cash ____ 25,000 ____567,000 Increase (decrease) in Cash 3,152,000 (5,460,000) Cash, Beginning of Period __16,388,000 __13,706,000 Cash, end of Period $ 19,540,000 $8,246,000 ============ =========== SUPPLEMENTAL CASH FLOW DATA Cash paid during the year: Interest $ 5,032,300 $ 6,502,295 Income taxes $ 7,960,500 $ 23,291,388
-4- See notes to consolidated financial statements. 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. In the opinion of management, the accompanying consolidated financial statements include all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the data for the interim periods. 2. During the second quarter,the Company acquired Paradontax line of oral hygiene products and Baby's Own brand which will be marketed through Europe and Canada respectively. 3. Subsequent to the close of the quarter, the Company acquired the Piriton allergy relief brand from Glaxo Wellcome Group. Piriton will be marketed in the U.K. through Stafford-Miller Limited, the Company's UK subsidiary. 4. During the six months ended September 30, 1996, the Company increased its net borrowings by $ 24,830,000 mainly from lines of credit from various banks bearing interest at variable rates. -5- 6 BLOCK DRUG COMPANY, INC. & SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION OPERATING RESULTS Consolidated world wide net sales of $204 million in the second quarter and $409 million in the first half year ended September 30, 1996 were 18% and 17% respectively above sales in the comparable prior year. Foreign sales increased 37% for the quarter and 27% for the six month period due mainly to new products and inclusion of Japanese operations as a wholly-owned subsidiary.Stated in local currency sales for the quarter increased 46% and 34% for the six month period. Domestic sales were higher both for the quarter and six months due to selective price increases and unit gains primarily in the Household Products segment. Interest, dividends and other income decreased in the six month period from the comparable year-ago period due primarily to the termination of its joint venture in Japan which is now a wholly-owned subsidiary. Interest Income also decreased due to sales of marketable securities to help finance product line acquisitions. The cost of goods sold percent to sales for the first six months of the current year was 31.3% with 32.6% in the prior period. These percentages were affected by improved manufacturing operations and mix of products sold, in addition to selective price increases. Selling, general and administrative expenses, most of which are related to advertising and promotional activities were 61.6% of sales in the first six months of the current year, compared with 62.4% in the prior period. These expenses reflect a major spending program to meet significant competition and build brand equities. Due to the above factors, income before taxes was 10.6% in the first half of the current period compared to 9.7% in the comparable prior year period. The effective income tax rates of 29.3% and 20.4% in the first half of the current and prior year, respectively, reflect tax exempt interest from government securities and income from the lower tax areas of Puerto Rico and Ireland. The increase in the current six month period is due primarily to the effects of accounting for the Company's Japanese operation as a wholly-owned subsidiary following the termination of its joint venture in Japan. - 6 - 7 Financial Condition Cash increased for the six month period ended September 30, 1996 to $19.5 million from $16.4 million at year-end March 31, 1996. The increase resulted primarily from an increase in accounts payable and short-term debt partially offset by an increase in accounts receivable and capital expenditures. In the prior year six months cash decreased to $8.2 million from $13.7 million at year-end March 31, 1995. The decrease resulted primarily from the reduction in debt, net purchases of securities and capital expenditures partially offset by the proceeds from the sale of business segment and increases in taxes payable. -7- 8 PART II. OTHER INFORMATION Item 6.__________Exhibits and Reports on Form 8K___________ (b) Reports on Form 8K - there were no reports on Form 8K for the three months ended September 30, 1996. _____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. __BLOCK_DRUG_COMPANY,_INC.__ (Registrant) 11-5-96 MELVIN KOPP ________________ ______________________________ DATE Melvin Kopp Senior Vice President & Chief Financial Officer -8- 9 EX-27 2
5 1000 6-MOS MAR-31-1997 SEP-30-1996 19540 9020 187447 4447 141397 420399 363284 116460 1033428 289747 0 0 0 2083 655857 1033428 409030 423275 128035 128035 247387 0 4462 43391 12714 30677 0 0 0 30677 1.47 1.47
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