-----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, Ka6QJXPrTtiBJQvKJAE6hmpV7IR6ANeHgzEdQBfwKy15RfguhnzO7+yHiz5WJD35 uPv3GAQ+oIWPLwMhINFqdg== 0000012654-97-000007.txt : 19970812 0000012654-97-000007.hdr.sgml : 19970812 ACCESSION NUMBER: 0000012654-97-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970811 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: 97654995 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,INC.FORM 10-Q,3MONTHS ENDED 06/30/97 SECURITIES AND EXCHANGE COMMISSION 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 June 30, 1997 _________________________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_June 30,_1997 Common Stock - Class A 13,553,972 Common Stock - Class B 7,935,532 1 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q JUNE 30, 1997 ____________________________ Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - June 30, 1997 and March 31, 1997 2 Consolidated Statements of Income for the three months ended June 30, 1997 and 1996 3 Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 1997 and 4 and 1996 Notes to Consolidated Financial Statements 5 Management's Discussion and Analysis of Operating Results and Financial Condition 6 Part II - Other Information 7 2 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) ASSETS __06/30/97__ __03/31/97__ Current Assets: Cash $ 5,893,000 $ 13,862,000 Marketable securities,at market 46,388,000 24,923,000 Accounts receivable, less allowances of $4,521,000 (6/30/97) and $4,504,000 (3/31/97) 157,033,000 164,104,000 Inventories: Raw & packaging materials 46,611,000 44,334,000 Finished goods 100,545,000 94,345,000 Other current assets 66,859,000 51,508,000 ------------ ----------- Total current assets 423,329,000 393,076,000 ------------ ----------- Property, plant and equipment, less depreciation of $124,764,000 (6/30/97) and $122,095,000 (3/31/97) 234,392,000 235,486,000 Long term securities,at market 220,677,000 225,999,000 Goodwill and other intangible assets- net of amortization 149,959,000 153,425,000 Other assets 5,281,000 6,937,000 ------------- ------------- Total Assets $1,033,638,000 $1,014,923,000 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Notes and bonds payable $130,430,000 $118,522,000 Accounts payable & accrued expenses 173,876,000 167,744,000 Income taxes payable 11,410,000 11,612,000 Dividends payable 5,030,000 5,026,000 ----------- ----------- Total current liabilities 320,746,000 302,904,000 ----------- ----------- Notes and bonds payable 55,883,000 55,943,000 Deferred compensation and other liabilities 16,968,000 16,012,000 Deferred income Taxes 10,356,000 8,744,000 ----------- ----------- Total Liabilities 403,953,000 383,603,000 ----------- ----------- Shareholders' Equity: Class A common stock, non-voting, par value $.10-15,000,000 shares authorized, 13,553,972 (6/30/97) and 13,544,460 (3/31/97) shares issued and outstanding 1,355,000 1,354,000 Class B common stock par value $.10- 30,000,000 shares authorized,7,935,532 shares issued and outstanding 794,000 794,000 Capital in excess of par value 249,859,000 249,375,000 Retained earnings 387,529,000 377,202,000 Cumulative foreign currency translation adjustment (11,151,000) 2,044,000 Unrealized holding gain on marketable securities 1,299,000 551,000 ----------- ----------- Total Shareholders' Equity 629,685,000 631,320,000 -------------- -------------- Total Liabilities & Shareholders' Equity $1,033,638,000 $1,014,923,000 ============== ==============
See notes to consolidated financial statements. 3 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE_MONTHS_ENDED JUNE 30, __1997_____________1996______ Revenues: Net sales $200,206,000 $205,507,000 Interest, dividends and other income 6,327,000 5,567,000 ----------- ----------- 206,533,000 211,074,000 ----------- ----------- Cost and Expenses: Cost of goods Sold 59,449,000 64,508,000 Selling, general and administrative 126,298,000 124,576,000 ----------- ----------- 185,747,000 189,084,000 ----------- ----------- Income before taxes 20,786,000 21,990,000 Income taxes 5,405,000 6,575,000 ----------- ----------- Net Income $15,381,000 $15,415,000 =========== =========== Average number of shares outstanding 21,483,816 21,444,291 (1) =========== ============ Net earnings per share $ .72 $ .72 (1) =========== =========== Cash dividends per share of class A common stock $ .31 $ .29 Cash dividends per share of class B common stock $ .1075 $ .10 (1) Restated to reflect 3% stock dividend.
See notes to consolidated financial statements. 4 BLOCK DRUG COMPANY INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED JUNE 30 _____1997_____ _____1996_____ CASH FLOW FROM OPERATING ACTIVITIES $6,498,000 ($8,996,000) -------------- ------------- CASH FLOW FROM INVESTING ACTIVITIES Additions to property, plant & equipment (7,704,000) ( 8,183,000) Proceeds from sale of building 5,200,000 Proceeds from sales of long-term securities 8,986,000 4,157,000 Purchases of long-term securities (4,898,000) (10,293,000) (Increase)decrease in marketable securities (18,391,000) 5,308,000 Payments for products acquired (4,149,000) ------------- ------------- Net Cash Used in investing activities (22,007,000) (7,960,000) ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to shareholders (5,054,000) ( 4,575,000) Payments of notes payable (2,628,000) Increase in short-term debt 11,848,000 21,745,000 ------------- ------------ Net cash provided by financing activities 6,794,000 14,542,000 ------------- ------------ Effect of exchange rates on cash 746,000 48,000 ------------- ------------ Decrease in cash (7,969,000) (2,366,000) Cash, beginning of period 13,862,000 16,388,000 ------------ ------------ Cash, end of period $5,893,000 $ 14,022,000 ============ ============ SUPPLEMENTAL CASH FLOW DATA Cash paid during the year: Interest $ 2,182,400 $ 1,544,700 Income taxes $ 4,001,000 $ 4,836,100
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. In April 1996 the Company terminated its joint venture agreement in Japan and acquired sole ownership of the joint venture company. 3. During the three months ended June 30, 1997, the Company increased its net borrowings by $ 11,848,000 mainly from lines of credit from various banks bearing interest at variable rates. 6 BLOCK DRUG COMPANY, INC. & SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION Operating Results Consolidated worldwide net sales of $200.2 million in the first quarter ended June 30, 1997 were lower compared to first quarter sales of the prior year by 2.6%. Foreign sales decreased by 2.7% for the quarter. Excluding the impact of exchange rates foreign sales for the quarter increased 3.1 %. Domestic sales were lower by 2.4% due to continued competitive pressures in many of our categories particularly Household Products. Interest, dividends and other income slightly increased in the quarter compared to the prior year comparable period due primarily to capital gain on sales of securities. Interest income was slightly higher due to change in the investment portfolio. The cost of goods sold percent to sales was 29.7% and 31.4% in the first quarter of the current and prior year,respectively. The cost of goods was lower primarily due to improved manufacturing operations and mix of products sold. Selling, general and administrative expenses, most of which are related to advertising and promotional activities, were 63.1% and 60.6% of sales in the first quarter of the current year and prior year, respectively. Due to the above factors, income from operations before taxes was 10.4% of sales in the first quarter of the current year and 10.7% in the same period last year. The effective income tax rates of 26.0% and 29.9% in the first quarter 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. Financial Condition Cash decreased in the current quarter ended June 30, 1997 from the year- ended March 31, 1997 by $8 million. The decrease resulted primarily from the increase in marketable securities,inventories and other current assets partially offset by increases in accounts payable, short-term debt and a decrease in accounts receivable. The company incurred $2.8 million of restructuring related cash outflows for the quarter. In the prior year first quarter ended June 30, 1996 cash decreased by $2.4 million. The decrease resulted primarily from increases in accounts receivable, inventories and other current assets partially offset by increases in accounts payable and short-term debt and a decrease in other assets. 7 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 June 30, 1997. _____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) August 11, 1997 MELVIN KOPP ________________ ______________________________ DATE Melvin Kopp Senior Vice President & Chief Financial Officer 8 EX-27 2
5 1000 3-MOS MAR-31-1998 JUN-30-1997 5893 46388 161554 4521 147156 423329 359156 124764 1033638 320746 0 0 0 2149 627536 1033638 200206 206533 59449 59449 125991 0 3307 20786 5405 15381 0 0 0 15381 .72 .72
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