-----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, Dkrt0lb7wD6nTP/60MyX931MakLQhfsHxF4VzeD2InLuzYdnbNJeKysfuK8qmnUg i6GwXQfLH0mToWQpi3eJhA== 0000012654-95-000013.txt : 19950814 0000012654-95-000013.hdr.sgml : 19950814 ACCESSION NUMBER: 0000012654-95-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 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: 95561856 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 6/30/95 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 June 30, 1995 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, 1995 ------- ------------------------------ Common Stock - Class A 12,478,485 Common Stock - Class B 7,704,400 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q JUNE 30, 1995 ____________________________ Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - June 30, 1995 and March 31, 1995 (Audited) 2 Consolidated Statements of Income for the three months ended June 30, 1995 and 1994 3 Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 1995 and 4 and 1994. 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 6/30/95 3/31/94 ------- --------- Current Assets: Cash $ 9,528,000 $ 13,706,000 Marketable Securities at market 21,408,000 24,061,000 Accounts receivable, less allowances of $3,386,000 (6/30/95) and $3,222,000 (3/31/95) 115,667,000 114,656,000 Inventories: Raw & packaging materials 36,566,000 41,033,000 Finished goods 78,079,000 72,386,000 Other current assets 31,188,000 30,045,000 ----------- ----------- Total Current Assets 292,436,000 295,887,000 Property, Plant and Equipment, less depreciation of $104,070,000 (6/30/95) and $98,549,000 (3/31/95) 231,722,000 229,446,000 Long Term Securities at market 262,409,000 260,076,000 Goodwill and Other Intangible Assets- net of amortization 55,810,000 64,040,000 Other Assets 25,268,000 21,871,000 ------------ ------------ Total Assets $867,645,000 $871,320,000 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Notes and Bonds payable $ 52,440,000 $155,591,000 Accounts payable & accrued expenses 106,992,000 101,952,000 Income taxes payable 38,380,000 8,884,000 Dividends payable 3,368,000 3,365,000 ----------- ----------- Total Current Liabilities 201,180,000 269,792,000 Notes and Bonds payable 15,252,000 15,273,000 Deferred compensation payable 10,441,000 10,638,000 Deferred Income Taxes 13,990,000 13,086,000 ----------- ----------- Total Liabilities 240,863,000 308,789,000 Shareholders' Equity: Class A Common Stock, non-voting, par value $.10-15,000,000 shares authorized, 12,478,485 (6/30/95) and 12,466,172 (3/31/95) shares issued and outstanding 1,247,000 1,247,000 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 194,857,000 194,426,000 Retained earnings 421,293,000 367,325,000 Cumulative foreign currency translation adjustment 2,902,000 (3,054,000) Unrealized holding gain on marketable securities 5,713,000 1,817,000 ----------- ----------- Total Shareholders' Equity 626,782,000 562,531,000 ------------ ------------ Total Liabilities & Shareholders' Equity $867,645,000 $871,320,000 ============= ===========
-2- See notes to consolidated financial statements. BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED JUNE 30, 1995 1994 ---- ---- Revenues: Net sales $178,810,000 $146,728,000 Interest, dividends and other income 8,392,000 6,807,000 ----------- ----------- 187,202,000 153,535,000 ----------- ----------- Cost and Expenses: Cost of Goods Sold 55,680,000 47,197,000 Selling, general and administrative 113,596,000 93,039,000 ----------- ----------- 169,276,000 140,236,000 ----------- ----------- Income from continuing operations before taxes 17,926,000 13,299,000 Income taxes 3,678,000 2,781,000 ----------- ------------ Income from continuing operations $14,248,000 $ 10,518,000 Discontinued operations (Note 2) Income from discontinued operations, net of taxes of $32,000 (1995) and $861,000 (1994) 52,000 1,405,000 Gain on sale of Division, net of taxes of $26,000,000 43,036,000 ----------- ----------- Income from discontinued operations 43,088,000 1,405,000 ----------- ----------- Net Income $57,336,000 $11,923,000 =========== =========== Average Number of shares outstanding 20,174,052 20,132,759 (1) =========== ============ Earnings per share: From continuing operations $ .71 $ .52 (1) From discontinued operations $ 2.13 $ .07 (1) ---------- ----------- Net earnings $ 2.84 $ .59 =========== =========== Cash dividends per share of class A common stock $ .27 $ .26
(1) Restated to reflect 3% stock dividend. -3- See notes to consolidated financial statements. BLOCK DRUG COMPANY INC. & SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED JUNE 30 1995 1994 ---- ---- CASH FLOW FROM OPERATING ACTIVITIES ($1,675,000) $ 15,886,000 CASH FLOW FROM INVESTING ACTIVITIES Proceeds from sale of business segment 106,000,000 Additions to Property, Plant & Equipment (7,080,000) ( 7,374,000) Proceeds from Sales of long-term Securities 15,088,000 2,395,000 Purchases of long-term Securities (10,334,000) Decrease (Increase) in Marketable Securities 132,000 (3,053,000) ----------- ----------- Net Cash Provided by (Used in) Investing Activities 103,806,000 (8,032,000) ----------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Dividends Paid to Shareholders ( 3,368,000) ( 3,080,000) Payments of Notes Payable (956,000) ( 4,880,000) Decrease in short-term Debt (102,216,000) ( 8,861,000) ------------ ------------ Net Cash Used in Financing Activities (106,540,000) (16,821.000) ------------ ----------- Effect of Exchange Rates on Cash 231,000 71,000 ------- ------- Decrease in Cash (4,178,000) (8,896,000) Cash, Beginning of Period 13,706,000 8,896,000 ------------ ----------- Cash, End of Period $ 9,528,000 ============= ============ SUPPLEMENTAL CASH FLOW DATA Cash Paid During the Year: Interest $ 3,707,158 $ 2,272,900 Income taxes $ 2,166,800 $ 3,619,600
-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 quarter the Company sold selected assets of its U.S. Reed & Carnrick Pharmaceutical Division with annual sales of approximately $ 50,000,000. The Company's international pharmaceutical businesses are not included in the sale and will operate as they did prior to the sale. This transaction is not expected to have an unfavorable impact on the Company's operating results. The gain on sale of the segment has been accounted for as discontinued operations and prior year financial statement has been restated to reflect the discontinuation of the segment. Revenues of the segment for the quarter ended June 30, 1995 and 1994 were $ 10,039,000 and $13,266,000, respectively. 3. The Company has signed a contract to acquire the U.S. Rug and Room Deodorizer business of Reckitt & Coleman, Inc. The Company will purchase Carpet Fresh and Rug Fresh trademarks and exclusive licenses for use of the Airwick and Neutra Air trademarks in the Rug and Room Deodorizer product category in the United States. This transaction is subject to receipt of regulatory consents and is expected to close in the third calender quarter of 1995. 4. During the three months ended June 30, 1995, the Company reduced its net borrowings by $ 103,172,000 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 from continuing operations of $178.8 million in the first quarter ended June 30, 1995 exceeded first quarter sales of the prior year by 22%. Foreign sales increased 25% for the quarter. Stated in local currency sales for the quarter increased 16%. Domestic sales were higher due to selective price increases and unit gains primarily in Consumer Products Segment. Interest, dividends and other income increased in the quarter from the comparable year-ago period due to investment in Block/Kobyashi Joint-Venture and a co-promotion arrangement in Dental Products Segment. The cost of goods sold percent to sales was 31.1% and 32.2% in the first quarter of the current and prior year respectively. 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 63.5% and 63.4% of sales in the first quarter of the current year and the prior year, respectively. These expenses reflect a major spending program to increase advertising and promotion to meet significant competition and build brand equities. Due to the above factors, income before taxes were 10.0% of sales in the first quarter of the current year and 9.1% in the same period last year. The effective income tax rates of 20.5% and 20.9% 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. On June 30, 1995 the Company sold selected assets of its U.S. Reed and Carnrick pharmaceutical division. The International Pharmaceutical Business were not included in this transaction. For additional information see note 2 to - 6 - Consolidated Financial Statement. This divestiture renews the Company's focus on its key areas of corporate strength to help achieve its long-term growth objectives. The Company will seek out new opportunities through acquisitions. Research and Development outlays have been increased in the continuing effort to develop new and improved products and line extensions. During the quarter, the company signed a contract to acquire the U.S. Rug and Room Deodorizer Business of Reckitt and Colman, Inc. Pursuant to the agreement, the Company will purchase the Carpet Fresh and Rug Fresh trademarks and be granted exclusive licenses for use of the Airwick and Neutra Air trademarks in the Rug and Room Deodorizer product category in the United States. This transaction is subject to receipt of regulatory consents and is expected to close in the third calendar quarter of 1995. Financial Condition Cash decreased in the current quarter ended June 30, 1995 from year-end March 31, 1995 by $4.2 million. The decrease resulted primarily from the reduction in debt and increased capital expenditures partially offset by the proceeds from the sale of business segment and increases in taxes payable and accrued expenses. In the prior year first quarter ended June 30, 1994 cash decreased 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. - 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, 1995. 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, 1995 MELVIN KOPP ________________ ______________________________ DATE Melvin Kopp Senior Vice President & Chief Financial Officer -8- EX-27 2
5 1000 3-MOS MAR-31-1996 JUN-30-1995 9528 21408 119053 3386 114645 292436 335792 104070 867645 201180 0 2017 0 0 624765 867645 178810 187202 55680 55680 110871 0 2725 17926 3678 14248 43088 0 0 57336 2.84 2.84
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