-----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, YJcphEBfSJ03VmXOnnMIsFdUupyw3j7buFm38Mr3BmqF9XewMBrAMzraK0Yy4uIv 7t3tBCi+/ilQnC2jgzS/Mg== 0000012654-94-000006.txt : 19940822 0000012654-94-000006.hdr.sgml : 19940822 ACCESSION NUMBER: 0000012654-94-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLOCK DRUG CO INC CENTRAL INDEX KEY: 0000012654 STANDARD INDUSTRIAL CLASSIFICATION: 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: 94543178 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 ENDED 6/30/94 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 June 30, 1994 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, 1994 Common Stock - Class A 11,848,651 Common Stock - Class B 7,704,400 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q JUNE 30, 1994 ____________________________ Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - June 30, 1994 and March 31, 1994 (Audited) 2 Consolidated Statements of Income for the three ended June 30, 1994 and 1993 3 Condensed Consolated Statements of Cash Flows for the three months ended June 30, 1994 and 4 1993. Notes to Consolidated Financial Statements 5 Management's Discussion and Analysis of Operating Results and Financial Condition 6 - 7 Part II - Other Information 8 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(UNAUDITED) ASSETS JUNE 30, 1994 March 31, 1994 Current Assets: Cash $ $ 8,896,000 Marketable Securities, at cost, which approximates market value 27,192,000 19,338,000 Accounts receivable, less allowances of $2,618,000 (6/30/94) and $2,709,000 (3/31/94) 100,717,000 97,814,000 Inventories: Raw and packaging materials 28,205,000 32,398,000 Finished goods 64,038,000 56,588,000 Other current assets 29,640,000 34,079,000 ------------ ------------ Total Current Assets 249,792,000 249,113,000 Property, Plant and Equipment, less accumulated depreciation of $85,968,000 (6/30/94) and $81,940,000 (3/31/94) 211,462,000 207,474,000 Long Term Securities at cost; market value $270,317,000 (6/30/94) and $281,601,000 (3/31/94) 267,993,000 275,574,000 Goodwill and Other Intangible Assets- net of amortization 21,410,000 21,721,000 Other Assets 20,766,000 17,186,000 ------------ ------------ Total Assets $771,423,000 $771,068,000 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes and Bonds payable $105,182,000 $114,983,000 Accounts payable and accrued expenses 94,070,000 88,359,000 Income taxes payable 8,876,000 10,056,000 Dividends payable 3,080,000 3,078,000 ------------ ------------ Total Current Liabilities 211,208,000 216,476,000 Notes and Bonds payable 13,940,000 17,880,000 Deferred compensation and other payables 10,000,000 10,167,000 Deferred Income Taxes 11,470,000 11,424,000 ------------ ------------ Total Liabilities 246,618,000 255,947,000 Stockholders' Equity: Class A Common Stock, non-voting, par value $.10-15,000,000 shares authorized, 11,848,651 (6/30/94) and 11,839,501 (3/31/94) shares issued and outstanding 1,185,000 1,184,000 Class B Common Stock par value $.10- 30,000,000 shares authorized, 7,704,400 (1994&1993) shares issued and outstanding 770,000 770,000 Capital in excess of par value 173,653,000 173,372,000 Retained earnings 358,343,000 349,500,000 Cumulative foreign currency translation adjustment (9,146,000) (9,705,000) ------------ ------------ Total Stockholders' Equity 524,805,000 515,121,000 ------------ ------------ Total Liabilities & Stockholders' Equity $771,423,000 $771,068,000
============= ============ -2- See notes to consolidated financial statements. BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED JUNE 30TH 1994 1993 ---- ---- Revenues: Net Sales $159,994,000 $150,480,000 Interest, Dividends and Other Income 6,807,000 6,220,000 ------------ ------------ 166,801,000 156,700,000 Cost and Expenses: Cost of Goods Sold 50,854,000 49,911,000 Selling, General and Administrative 100,382,000 86,464,000 ------------ ------------ 151,236,000 136,375,000 Income Before Income Taxes 15,565,000 20,325,000 Income Taxes 3,642,000 4,675,000 ------------ ------------ Net Income $ 11,923,000 $ 15,650,000 ============ ============ Average Number of Shares Outstanding 19,546,368 19,516,728 (1) Net Income per Share of Common Stock $ .61 $ .80 (1) =========== ========== Cash Dividends per Share of Class A Common Stock $ .26 $ .25 =========== ==========
(1) RESTATED TO REFLECT 3% STOCK DIVIDEND -3- See notes to consolidated financial statements. BLOCK DRUG COMPANY INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
THREE MONTHS ENDED JUNE 30 1994 1993 ---- ---- CASH FLOW FROM OPERATING ACTIVITIES $_15,886,000 $ 19,357,000 CASH FLOW FROM INVESTING ACTIVITIES Additions to Property Plant & Equipment ( 7,374,000) ( 8,096,000) Proceeds from Sales of Long-Term Securities 2,395,000 4,171,000 Purchases of Long-Term Securities (17,304,000) (Increase) in Marketable Securities, Net _(_3,053,000) ___2,383,000 Net Cash Used in Investing Activities _( 8,032,000) _(18,846,000) CASH FLOWS FROM FINANCING ACTIVITIES Dividends Paid to Shareholders ( 3,080,000) ( 2,809,000) Payments of Notes Payable ( 4,880,000) ( 236,000) Increase (Decrease) in Short-Term Debt (_8,861,000) __2,633,000 Net Cash (Used) in Financing Activities (16,821,000 ( 412,000) Effect of Exchange Rates on Cash _____71,000 ____127,000 Increase (Decrease) in Cash ( 8,896,000) 226,000 Cash Beginning of Year ___8,896,000 __6,627,000 Cash, End of Period $ 0 $ 6,853,000 ============= ============ SUPPLEMENTAL CASH FLOW DATA Cash Paid During the Year: Interest $ 2,272,900 $ 1,863,945 Income taxes $ 3,619,600 $ 3,062,010
-4- See notes to consolidated financial statements. 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 three months ended June 30, 1994, the Company reduced its net borrowings by $13,741,000 mainly from lines of credit from various banks bearing interest at variable rates. -5- BLOCK DRUG COMPANY, INC. & SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION Operating Results Sales of $160.0 million in the first quarter ended June 30, 1994 exceeded first quarter sales of the prior year by 6%. Foreign sales were even with the prior year partially due to a stronger U.S. dollar relative to foreign currencies. Domestic sales were higher due to selective price increases and unit gains. Interest, dividends and other income increased in the current quarter from the comparable year-ago period principally due to increased investment in marketable and long term securities. The cost of goods sold percentage to sales was 31.8% and 33.2% in the first quarter of the current and prior year, respectively. These percentages were affected by selective price increases and the mix of products sold. Selling, general and administrative expenses, most of which are related to advertising and promotional activities, were 62.7% and 57.5% of sales in the first quarter of the current and prior year, respectively. These expenses have increased to reflect a major spending program to increase advertising and promotion behind core business to build brand equities and meet significant competition. Due to the above factors income before income taxes were 9.7% of sales in the first quarter of the current year and 13.5% in the same period last year. The effective income tax rates of 23.4% and 23.0% 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. -6- Financial Condition Cash decreased in the current quarter ended June 30,1994 from year-end March 31, 1994 by $8.9 million. The decrease resulted primarily from decreases in debt and an increase in capital expenditures, accounts receivable, inventories and other assets partially offset by an increase in accrued expenses and decrease in other current assets. The increase in accounts receivable was partially due to higher sales. In the prior year first quarter ended June 30, 1993 cash increased to $6.9 million from $6.6. million at year-end March 31, 1993. The increase resulted primarily from increases in short-term debt, accrued expenses and income taxes payable together with a decrease in accounts receivable, offset by increases in other current assets and capital expenditures. -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, 1994 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 12, 1994 MELVIN KOPP --------------- ------------------------------ DATE Melvin Kopp Senior Vice President & Chief Financial Officer -8- -----END PRIVACY-ENHANCED MESSAGE-----