-----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, ngN+83VP0ZwaA8bY7O0qsv72HAmbvJc+OheGcFqs60p6ctkL1id596YMYgC82oV7 c7ww0IWv69lDOIQNKqlihg== 0000012654-94-000008.txt : 19941116 0000012654-94-000008.hdr.sgml : 19941116 ACCESSION NUMBER: 0000012654-94-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 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: 94558915 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 9/30/94 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 September 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 past90 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, 1994 Common Stock - Class A 11,860,651 Common Stock - Class B 7,704,400 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q SEPTEMBER 30, 1994 ---------------------------- Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - September 30, 1994 and March 31, 1994 2 Consolidated Statements of Income for the three amd six months ended September 30, 1994 and 1993 3 Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 1994 4 and 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 9/30/94 3/31/94 Current Assets: Cash $ 16,414,000 $ 8,896,000 Marketable Securities, at cost, which approximates market value 21,102,000 19,338,000 Accounts receivable, less allowances of $2,605,000 (9/30/94) and $2,709,000 (3/31/94) 106,662,000 97,814,000 Inventories: Raw and packaging materials 30,193,000 32,398,000 Finished goods 67,990,000 56,588,000 Other current assets 26,617,000 34,079,000 ---------- ---------- Total Current Assets 268,978,000 249,113,000 Property, Plant and Equipment, less accumulated depreciation of $90,377,000 (9/30/94) and $81,940,000 (3/31/94) 215,617,000 207,474,000 Long Term Securities at cost; market value $250,691,000 (9/30/94) and $281,601,000 (3/31/94) 249,473,000 275,574,000 Goodwill and Other Intangible Assets- net of amortization 21,192,000 21,721,000 Other Assets 22,800,000 17,186,000 ------------- ------------ Total Assets $778,060,000 $771,068,000 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes and Bonds payable $ 97,525,000 $114,983,000 Accounts payable and accrued expenses 93,603,000 88,359,000 Income taxes payable 6,314,000 10,056,000 Dividends payable 3,083,000 3,078,000 ----------- ----------- Total Current Liabilities 200,525,000 216,476,000 Notes and Bonds payable 15,622,000 17,880,000 Deferred compensation and other payables 10,357,000 10,167,000 Deferred Income Taxes 11,894,000 11,424,000 ----------- ----------- Total Liabilities 238,398,000 255,947,000 Stockholders' Equity: Class A Common Stock, non-voting, par value $.10-15,000,000 shares authorized, 11,860,651 (9/30/94) and 11,839,501 (3/31/94) shares issued and outstanding 1,186,000 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 174,019,000 173,372,000 Retained earnings 367,643,000 349,500,000 Cumulative foreign currency translation adjustment (3,956,000) (9,705,000) ----------- ----------- Total Stockholders' Equity 539,662,000 515,121,000 Total Liabilities & Stockholders' Equity $778,060,000 $771,068,000 ============= ============
-2- See notes to consolidated financial statements. BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1994 1993 1994 1993 ---- ---- ---- ---- Revenues: Net Sales $165,894,000 $153,535,000 $325,888,000 $304,015,000 Interest, Dividends and Other Income 5,515,000 7,056,000 12,322,000 13,276,000 ----------- ----------- ----------- ----------- 171,409,000 160,591,000 338,210,000 317,291,000 Cost and Expenses: Cost of Goods Sold 53,678,000 52,311,000 104,532,000 102,222,000 Selling, General and Administrative 101,441,000 94,863,000 201,823,000 181,327,000 ----------- ----------- ----------- ----------- 155,119,000 147,174,000 306,355,000 283,549,000 Income Before Inc.Taxes 16,290,000 13,417,000 31,855,000 33,742,000 Income Taxes 3,908,000 2,613,000 7,550,000 7,288,000 ----------- ----------- ----------- ----------- Net Income $12,382,000 $10,804,000 $24,305,000 $26,454,000 =========== =========== =========== =========== Average Number of Shares Outstanding 19,556,851 19,524,066 19,551,609 19,520,397 Net Income per Share of Common Stock $ .63 $ .55 $ 1.24 $ 1.35 ========== ========== ========== ========== Cash Dividends per Share of Class A Common Stock $ .26 $ .25 $ .52 $ .50 ========== ========== ========== ==========
-3- See notes to consolidated financial statements. BLOCK DRUG COMPANY INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED SEPTEMBER 30, 1994 1993 ---- ---- CASH FLOW FROM OPERATING ACTIVITIES $ 21,973,000 $30,102,000 ---------- ---------- CASH FLOW FROM INVESTING ACTIVITIES Additions to Property Plant & Equipment (13,273,000) (19,239,000) Proceeds from Sales of Long-Term Securities 24,541,000 11,763,000 Purchases of Long-Term Securities ( 4,846,000) (31,969,000) Decrease in Marketable Securities, Net 4,535,000 6,979,000 ---------- ----------- Net Cash Provided by (Used) in Investing Activities 10,957,000 (32,466,000) ---------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES Dividends Paid to Shareholders (6,162,000) (5,620,000) Payments of Notes Payable ( 3,198,000) (143,000) (Decrease) Increase in Short-Term Debt (16,518,000) 10,614,000 ------------ ---------- Net Cash (Used in) Provided by Financing Activities (25,878,000) 4,851,000 ------------ --------- Effect of Exchange Rates on Cash 466,000 (504,000) -------- --------- Increase in Cash 7,518,000 1,983,000 Cash Beginning of Period 8,896,000 6,627,000 ------------ ----------- Cash, End of Period $ 16,414,000 $ 8,610,000 ============ =========== SUPPLEMENTAL CASH FLOW DATA Cash Paid During the Year: Interest $ 4,144,586 $ 2,563,023 Income taxes $ 8,905,029 $ 4,181,292
-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 six months ended September 30, 1994, the Company reduced its net borrowings by $19,716,000 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 $166 million in the second quarter and $326 million in the first half year ended September 30,1994 were 8% and 7%, respectively, above sales for the comparable prior year. Foreign sales increased 12% for the quarter and 6% for the six month period. Stated in local currency, foreign sales approximated dollar sales for the above period. Domestic sales increased due to selective price increases and unit gains. Interest, dividends and other income for the first six months was lower than the comparable prior period, primarily due to a decrease in long term security holdings. The cost of goods sold percentage to sales was 32.1% and 33.6% in the first six months of the current and prior year, respectively. These percentages were affected by mix of products sold, selective price increases as well as improved manufacturing operations. Selling, general and administrative expenses, most of which are related to advertising and promotional activities, were 61.9% of sales in the first six months of the current year, compared with 59.6% in the prior period. These expenses have increased to reflect a major spending program to meet significant competition and build brand equities. As a result of the above, pretax income was 9.8% of sales in the first half of the current period compared to 11.1% in the comparable prior year period. The effective income tax rates of 23.7% and 21.6% 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. -6- Liquidity & Capital Resources Cash increased for the six months ended September 30, 1994 to $16.4 million from $8.9 million at year-end March 31, 1994. The net increase resulted primarily from net sales of securities, a decrease in other current assets and an increase in accrued expenses. This was partially offset by decreases in debt, capital expenditures and increases in inventories, accounts receivable and other assets. In the prior year six months cash increased to $8.6 million from $6.6 million of year-end March 31, 1993. The net increase resulted primarily from higher short-term debt, accrued expenses and income taxes payable partially offset by increases in other accrued assets, capital expenditure and net purchases of securities. -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 September 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) November 10, 1994 MELVIN KOPP - ---------------- ------------------------------ DATE Melvin Kopp Senior Vice President & Chief Financial Officer -8- -----END PRIVACY-ENHANCED MESSAGE-----