-----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, LIBVCADaGDqV6SILX/zaTov+HRKm8rCRunEp2EvFlffVK1/bdC17WZlEspV356Ba AEk+9gjHYqJYf7/w9fOddQ== 0000012654-97-000010.txt : 19971114 0000012654-97-000010.hdr.sgml : 19971114 ACCESSION NUMBER: 0000012654-97-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 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: SEC FILE NUMBER: 000-06436 FILM NUMBER: 97713016 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 09/30/97 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 September 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_September 30,_1997 Common Stock - Class A 13,564,537 Common Stock - Class B 7,935,532 1 BLOCK DRUG COMPANY, INC. INDEX TO FORM 10-Q SEPTEMBER 30, 1997 ____________________________ Part I - Financial Information - Unaudited Page No. Consolidated Balance Sheets - September 30, 1997 and March 31, 1997 3 Consolidated Statements of Income for the three and six months ended September 30, 1997 and 1996 4 Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 1997 and 5 and 1996. Notes to Consolidated Financial Statements 6 Management's Discussion and Analysis of Operating Results and Financial Condition 7 Part II - Other Information 8 2 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Unaudited) ASSETS __09/30/97__ __03/31/97__ Current Assets: Cash $ 30,625,000 $ 13,862,000 Marketable securities,at market 36,336,000 24,923,000 Accounts receivable, less allowances of $4,495,000 (9/30/97) and $4,504,000 (3/31/97) 149,283,000 164,104,000 Inventories: Raw & packaging materials 54,604,000 44,334,000 Finished goods 97,975,000 94,345,000 Other current assets ___72,089,000 __51,508,000 Total current assets 440,912,000 393,076,000 Property,plant and equipment, less accumulated depreciation of $128,924,000 (9/30/97) and $122,095,000 (3/31/97) 236,238,000 235,486,000 Long term securities at market 235,733,000 225,999,000 Goodwill and other intangible assets- net of amortization 187,811,000 153,425,000 Other assets ___ 4,447,000 __ 6,937,000 Total assets $1,105,141,000 $1,014,923,000 ============= ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Notes and bonds payable $186,468,000 $118,522,000 Accounts payable & accrued expenses 174,802,000 167,744,000 Income taxes payable 11,769,000 11,612,000 Dividends payable ____5,057,000 __5,026,000 Total current liabilities 378,096,000 302,904,000 Notes and bonds payable 55,870,000 55,943,000 Deferred compensation and other payables 17,302,000 16,012,000 Deferred income taxes ___11,031,000 _ 8,744,000 Total liabilities __462,299,000 383,603,000 Shareholders' Equity: Class A common stock, non-voting, par value $.10-15,000,000 shares authorized, 13,564,537 (9/30/97) and 13,544,460 (3/31/97) shares issued and outstanding 1,356,000 1,354,000 Class B common stock par value $.10- 30,000,000 shares authorized, 7,935,532 (1997 & 1996) shares issued and outstanding 794,000 794,000 Capital in excess of par value 250,319,000 249,375,000 Retained earnings 397,724,000 377,202,000 Cumulative foreign currency translation adjustment (9,781,000) 2,044,000 Unrealized holding gain on marketable securities ____2,430,000 _ 551,000 Total shareholders' equity __642,842,000 _631,320,000 Total liabilities & shareholders' equity $1,105,141,000 $1,014,923,000 ============= ==============
-3- See notes to consolidated financial statements. 3 BLOCK DRUG COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE_MONTHS_ENDED SIX_MONTHS_ENDED SEPTEMBER_30, SEPTEMBER_30, _1997_____________1996____ _______1997________1996___ Revenues: Net sales $221,878,000 $203,523,000 $422,084,000 $409,030,000 Interest, dividends and other income ___6,790,000 ___8,678,000 __13,117,000 __14,245,000 _228,668,000 _212,201,000 _435,201,000 _423,275,000 Cost and expenses: Cost of goods sold 77,628,000 63,527,000 137,077,000 128,035,000 Selling, general and administrative _129,829,000 _127,273,000 _256,127,000 _251,849,000 _207,457,000 _190,800,000 _393,204,000 _379,884,000 Income from operations before income taxes 21,211,000 21,401,000 41,997,000 43,391,000 Income taxes 5,934,000 6,139,000 11,339,000 12,714,000 ------------ ----------- ----------- ---------- Net income 15,277,000 15,262,000 30,658,000 $30,677,000 ============= =========== ========== =========== Average number of shares outstanding 21,493,053 21,454,055 21,488,434 21,449,171 =========== =========== ========== ========== Net earnings per share $ 0.71 $ 0.71 $ 1.43 $ 1.43 =========== =========== =========== ========== Cash dividends per share Class A $ 0.31 $ 0.29 $ 0.62 $ 0.58 Class B $ 0.1075 $ 0.10 $ 0.2150 $ 0.20
-4- See notes to consolidated financial statements 4 BLOCK DRUG COMPANY INC.AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED SEPTEMBER 30 _____1997_________1996____ CASH_FLOW_FROM_OPERATING_ACTIVITIES $_30,869,000 $_11,223,000 CASH FLOW FROM INVESTING ACTIVITIES Additions to property, plant & equipment (16,351,000) (19,655,000) Proceeds from sale of property 5,200,000 Proceeds from sales of long-term securities 39,062,000 4,944,000 Purchases of long-term securities (49,637,000) (10,293,000) (Increase)decrease in marketable securities (7,312,000) 2,686,000 Payment for products acquired (39,008,000) (6,657,000) ------------- ------------ Net cash used in investing activities (73,246,000) (23,775,000) CASH FLOW FROM FINANCING ACTIVITIES Dividends paid to shareholders (10,136,000) ( 9,151,000) Payments of notes payable ( 5,625,000) (Decrease)increase in long-term debt (73,000) 2,997,000 Increase in short-term debt 67,946,000 27,458,000 ----------- ------------ Net cash provided by financing activities 57,737,000 15,679,000 Effect of exchange rates on cash __1,403,000 ____ 25,000 Increase in Cash 16,763,000 3,152,000 Cash, beginning of period __13,862,000 __16,388,000 Cash, end of period $ 30,625,000 $ 19,540,000 ============ ============ SUPPLEMENTAL CASH FLOW DATA Cash paid during the year: Interest $ 6,369,200 $ 5,032,300 Income taxes $ 8,325,300 $ 7,960,500
-5- 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. During the second quarter,the Company acquired Beano,a food dietary supplement. 3. During the six months ended September 30, 1997, the Company increased its net borrowings by $ 67,873,000 mainly from lines of credit from various banks bearing interest at variable rates. -6- 6 BLOCK DRUG COMPANY, INC. & SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL CONDITION OPERATING RESULTS Consolidated worldwide net sales of $221.9 million in the second quarter and $422.1 million in the first half year ended September 30, 1997 were 9% and 3.2% respectively above sales in the comparable prior year periods. Foreign sales increased 8.2% for the quarter and 2.7% for the six month period. Excluding the impact of exchange rates foreign sales for the first half of the year increased 9%. Domestic sales were higher for the quarter and six months by 10.1% and 3.9% respectively due to the introduction of new products and line extensions. Interest dividends and other income decreased in the six month period from the comparable year-ago period due primarily to lower co-promotion income. Gains on sales of securities was offset by lower interest income from securities. The cost of goods sold percent to sales was 32.5% and 31.3% for the first six months of the current and prior year, respectively. The strong U.S.dollar has adversely affected the cost of goods sold, particularly from the Ireland facility which serves both Europe and Japan. Selling, general and administrative expenses, most of which are related to advertising and promotional activities,were 60.7% of sales in the first six months of the current year, compared with 61.6% in the prior year period. These expenses reflect a major spending program to meet significant competition and build brand equities. Due to the above factors, income before taxes was 9.9% of sales in the first half of the current year compared to 10.6% in the comparable prior year period. The effective income tax rates of 27% and 29.3% 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. Financial Condition Cash increased for the six month period ended September 30, 1997 to $30.6 million from $13.9 million at year-end March 31, 1997. The increase resulted primarily from a decrease in accounts receivable and an increase in short-term debt partially offset by an increase in other current assets,capital expenditures and payments for products acquired. In the prior year six months cash increased to $19.5 million from $16.4 million at year-end March 31, 1996. The increase resulted primarily from an increase in accounts payable and short-term debt partially offset by an increase in accounts receivable and capital expenditures. - 7 - 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, 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) 11-10-97 MELVIN KOPP ________________ ______________________________ DATE Melvin Kopp Senior Vice President & Chief Financial Officer -8- 8 EX-27 2
5 1000 6-MOS MAR-31-1998 SEP-30-1997 30625 36336 153778 4495 152579 440912 365162 128924 1105141 378096 0 0 0 2150 640692 1105141 422084 435201 137077 137077 249776 0 6351 41997 11339 30658 0 0 0 30658 1.43 1.43
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