-----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, BOVIsudOt25sLX9ViH1AnxkZTp36NmNkQwcQx3TFFt6CrZOdTSOr8jPTPHg1LipX peRBoI0CEr67siyUOZzIEA== 0000012654-95-000007.txt : 19950515 0000012654-95-000007.hdr.sgml : 19950515 ACCESSION NUMBER: 0000012654-95-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950214 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: 95509859 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 December 31, 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 December 31, 1994 - ------------------------ -------------------------------- Common Stock - Class A 11,868,708 Common Stock - Class B 7,704,400 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q DECEMBER 31, 1994 ____________________________ Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - December 31, 1994 and March 31, 1994 2 Consolidated Statements of Income for the three amd nine months ended December 31, 1994 and 1993 3 Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 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)
12/31/94 3/31/94 ASSETS Current Assets: Cash $ 12,550,000 $ 8,896,000 Marketable Securities, at cost, which approximates market value 30,101,000 19,338,000 Accounts receivable, less allowances of $2,421,000 (12/31/94) and $2,709,000 (3/31/94) 103,253,000 97,814,000 Inventories: Raw and packaging materials 35,108,000 32,398,000 Finished goods 72,062,000 56,588,000 Other current assets 29,547,000 34,079,000 ------------- ------------ Total Current Assets 282,621,000 249,113,000 Property, Plant and Equipment, less accumulated depreciation of $94,935,000 (12/31/94) and $81,940,000 (3/31/94) 221,873,000 207,474,000 Long Term Securities at cost; market value $253,196,000 (12/31/94) and $281,601,000 (3/31/94) 256,955,000 275,574,000 Goodwill and Other Intangible Assets- net of amortization 61,730,000 21,721,000 Other Assets 22,064,000 17,186,000 ------------ ------------ Total Assets $845,243,000 $771,068,000 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Notes and Bonds payable $141,752,000 $114,983,000 Accounts payable and accrued expenses 103,657,000 88,359,000 Income taxes payable 6,176,000 10,056,000 Dividends payable 3,203,000 3,078,000 ----------- ----------- Total Current Liabilities 254,788,000 216,476,000 Notes and Bonds payable 15,622,000 17,880,000 Deferred compensation and other payables 10,290,000 10,167,000 Deferred Income Taxes 12,287,000 11,424,000 ----------- ----------- Total Liabilities 292,987,000 255,947,000 ----------- ----------- Stockholders' Equity: Class A Common Stock, non-voting, par value $.10-15,000,000 shares authorized, 11,868,708 (12/31/94) and 11,839,501 (3/31/94) shares and outstanding 1,187,000 1,184,000 Class A Common Stock Dividend distributable 59,000 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 194,043,000 173,372,000 Retained earnings 356,846,000 349,500,000 Cumulative foreign currency translation adjustment (649,000) (9,705,000) ----------- ----------- Total Stockholders' Equity 552,256,000 515,121,000 ----------- ----------- Total Liabilities & Stockholders' Equity $845,243,000 $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 DECEMBER 31, DECEMBER 31, 1994 1993 1994 1993 ----------- ----------- ----------- ----------- Revenues: Net Sales $163,644,000 $155,644,000 $489,532,000 $459,659,000 Interest, Dividends and Other Income 5,509,000 4,546,000 17,831,000 17,822,000 ----------- ----------- ----------- ----------- 169,153,000 160,190,000 507,363,000 477,481,000 Cost and Expenses: Cost of Goods Sold 50,980,000 52,461,000 155,512,000 154,683,000 Selling, General and Administrative 102,960,000 93,324,000 304,783,000 274,651,000 ----------- ----------- ----------- ----------- 153,940,000 145,785,000 460,295,000 429,334,000 ----------- ----------- ----------- ----------- Income Before Inc Tax 15,213,000 14,405,000 47,068,000 48,147,000 Income Taxes 2,993,000 3,545,000 10,543,000 10,833,000 ----------- ------------ ------------ ------------ Net Income $12,220,000 $ 10,860,000 $ 36,525,000 $ 37,314,000 =========== ============ ============ ============ Average Number of Shares Outstanding 20,153,316 20,120,709 20,143,210 20,110,919 Net Income per Share of Common Stock $ .61 $ .54 $ 1.81 $ 1.85 =========== ========= ============ ============ Cash Dividends per Share of Class A Common Stock $ .27 $ .25 $ .79 $ .76 =========== ========== ============ ===========
-3- See notes to consolidated financial statements. BLOCK DRUG COMPANY INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED DECEMBER 31 _____1994_________1993____ CASH FLOW FROM OPERATING ACTIVITIES $_42,791,000 $ 60,406,000 CASH FLOW FROM INVESTING ACTIVITIES Increase in Goodwill & Intangibles (40,630,000) Additions to Property Plant & Equipment (22,192,000) (26,483,000) Proceeds from Sales of Long-Term Securities 25,750,000 17,889,000 Purchases of Long-Term Securities (14,752,000) (41,498,000) (Increase) Decrease in Marketable Securities, net (3,267,000) 5,578,000 ------------ ----------- Net Cash Used in Investing Activities (55,091,000) (44,514,000) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Dividends Paid to Shareholders ( 9,366,000) ( 8,554,000) Payments of Notes Payable ( 3,198,000) ( 578,000) (Decrease) Increase in Short-Term Debt 27,709,000 ( 3,254,000) ----------- ----------- Net Cash Provided by (Used in) Financing Activities 15,145,000 (12,386,000) ---------- ----------- Effect of Exchange Rates on Cash 809,000 ( 432,000) ---------- ----------- Increase in Cash 3,654,000 3,074,000 Cash Beginning of Period 8,896,000 6,627,000 ----------- ----------- Cash, End of Period $ 12,550,000 $ 9,701,000 ============= ============ SUPPLEMENTAL CASH FLOW DATA Cash Paid During the Year: Interest $ 5,748,037 $ 5,544,754 Income taxes $ 11,924,675 $ 11,579,492 SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING AND INVESTING ACTIVITIES 3% Stock Dividend $ 19,813.000 $ 18,353.000
-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. It is suggested that these financial statements be read in conjunction with financial statements and notes thereto included in the Company's 1994 annual report on Form 10-K and subsequent quarterly filing. 2. During the nine months ended December 31, 1994, the Company borrowed $24,511,000 mainly from lines of credit from various banks bearing interest at variable rates. 3. The Company acquired Goody's Pharmaceutical Company on December 16, 1994. The effect of this acquisition is not material to consolidated financial position or results of operations of the Company. -5- BLOCK DRUG COMPANY, INC. & SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION Operating Results Sales of $163.6 million in the third quarter and $489.5 million in the nine months ended December 31, 1994 were 5% and 6%, respectively above sales for the comparable prior year. Foreign sales increased 15% for the quarter and 9% for the nine month period. Stated in local currency, sales for the quarter increased 10% and 8% for the nine months, respectively. Domestic sales were higher due to selective price increases and unit gains. Interest, dividends and other income for the nine month period approximated the prior year. The cost of goods sold percentage to sales was 31.8% and 33.7% in the first nine months of the current and prior year, respectively. These percentages were affected by selective price increases, mix of products sold as well as improved manufacturing operations. Selling, general and administrative expenses which consist mainly of advertising and promotional expenditures were 62.2% of sales in the first nine months of the current year, compared with 59.8% in the prior period. These expenses have increased to reflect a major spending program to meet significant competition and build brand equities. Due to the above factors, pretax income was 9.6% of sales in the nine months of the current period compared to 10.5% in the comparable period last year. The effective income tax rates of 22.4% and 22.5% in the first nine months of the current and prior year, respectively, reflect tax-exempt interest from government securities and income from the lower tax jurisdictions of Puerto Rico and Ireland. -6- Liquidity_&_Capital_Resources Cash increased for the nine months ended December 31, 1994 to $12.6 million from $8.9 million at year-end March 31, 1994. The net increase resulted primarily from a positive cash flow from operating activities, an increase in accrued expenses and higher short-term borrowings. This effect was partially offset by increases in goodwill and other intangible assets, capital expenditures and inventories. The increase in goodwill and other intangible assets and short-term borrowings were mainly due to the Goody's acquisition. In the prior year nine months cash increased to $9.7 million from $6.6 million at year-end March 31, 1993. The net increase resulted primarily from a positive cash flow from operations, partially offset by net purchases of securities, capital expenditures and a reduction in notes payable. -7- PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8K (a) Exhibit required by item 601 (c), Regulation S-K Exhibit No. Description 27 Financial Data Schedule (b) Reports on Form 8K - there were no reports on Form 8K for the three months ended December 31, 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) February 14, 1995 MELVIN KOPP ________________ ______________________________ DATE Melvin Kopp Senior Vice President & Chief Financial Officer -8- EX-27 2
5 1000 9-MOS MAR-31-1995 DEC-31-1994 12,550 30,101 105,674 2,421 107,170 282,621 316,808 94,935 845,243 254,788 157,374 1,957 0 0 550,299 845,243 489,532 507,363 155,512 155,512 299,961 0 5,945 47,068 10,543 36,525 0 0 0 36,525 1.81 1.81
-----END PRIVACY-ENHANCED MESSAGE-----