-----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, eUS2d70nHWGg4HqyDuKCZ/13XEzfpgqf8SALIR1pHTbtfl/iS5vFaJe/TTuaueKL sO84EN3FDJMkY8RHWo7iUA== 0000950114-94-000115.txt : 19941117 0000950114-94-000115.hdr.sgml : 19941117 ACCESSION NUMBER: 0000950114-94-000115 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941110 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GRAYBAR ELECTRIC CO INC CENTRAL INDEX KEY: 0000205402 STANDARD INDUSTRIAL CLASSIFICATION: 5063 IRS NUMBER: 130794380 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-00255 FILM NUMBER: 94558502 BUSINESS ADDRESS: STREET 1: 34 N MERAMEC AVE CITY: ST LOUIS STATE: MO ZIP: 63105 BUSINESS PHONE: 3147273900 MAIL ADDRESS: STREET 1: P O BOX 7231 CITY: ST LOUIS STATE: MO ZIP: 63177 10-Q 1 GRAYBAR ELECTRIC COMPANY, INC. FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q Commission File Number 0-255 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 -------------------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------------ ----------- GRAYBAR ELECTRIC COMPANY, INC ------------------------------------------------------ (Exact name of registrant as specified in its charter) NEW YORK 13 - 0794380 - - -------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No. 34 NORTH MERAMEC AVENUE, ST. LOUIS, MO 63105 - - -------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) POST OFFICE BOX 7231, ST. LOUIS, MO 63177 - - -------------------------------------------------------------------------- (Mailing Address) (Zip Code) Registrant's telephone number, including area code: (314) 727-3900 ---------------------- Indicate by check mark whether the registrant (1) has filed all 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 period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO ------- ------- Common Stock Outstanding at October 31, 1994: 4,326,940 ------------------------ (Number of Shares) 2 PART I ------ CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
SEPTEMBER 30, 1994 DECEMBER 31, 1993 ================== ================= CURRENT ASSETS Cash $ 34,528 $ 17,332 ------------------ ----------------- Trade receivables 305,291 256,634 ------------------ ----------------- Merchandise inventory 213,087 167,927 ------------------ ----------------- Other current assets 11,162 10,099 ------------------ ----------------- Total current assets 564,068 451,992 ------------------ ----------------- PROPERTY Land 18,231 16,812 ------------------ ----------------- Buildings and permanent fixtures 202,572 190,005 ------------------ ----------------- Capital equipment leases 30,416 29,612 ------------------ ----------------- Less-Accumulated depreciation 106,222 99,494 ------------------ ----------------- Net property 144,997 136,935 ------------------ ----------------- DEFERRED FEDERAL INCOME TAXES 15,250 14,446 ------------------ ----------------- OTHER ASSETS 8,207 7,139 ------------------ ----------------- $ 732,522 $ 610,512 ================== ================= CURRENT LIABILITIES Notes payable to banks $ 92,381 $ 82,194 ------------------ ----------------- Current portion of long-term debt 13,207 11,000 ------------------ ----------------- Trade accounts payable 248,607 193,843 ------------------ ----------------- Income taxes 3,550 519 ------------------ ----------------- Other accrued taxes 7,516 6,375 ------------------ ----------------- Accrued payroll and benefit costs 25,509 27,643 ------------------ ----------------- Dividends payable --- 4,910 ------------------ ----------------- Other payables and accruals 23,512 5,589 ------------------ ----------------- Total current liabilities 414,282 332,073 ------------------ ----------------- POSTRETIREMENT BENEFITS LIABILITY 73,750 73,000 ------------------ ----------------- LONG TERM DEBT 92,223 63,621 ------------------ -----------------
2 3 CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
SEPTEMBER 30, 1994 DECEMBER 31, 1993 ================== ================= (C> SHAREHOLDERS' EQUITY CAPITAL STOCK Preferred: --------- Par value $20 per share Authorized 300,000 shares SHARES ------ 1994 1993 ---- ---- Issued to voting trustees 9,533 9,533 ------------- -------------- In treasury, at cost (1,220) (378) ------------- -------------- Outstanding 8,313 9,155 166 183 ------------- -------------- ----------------- ---------------- Common: ------ Stated value $20 per share Authorized 5,000,000 shares SHARES ------ 1994 1993 ---- ---- Issued to voting trustees 4,259,156 4,239,403 ------------- -------------- Issued to shareholders 241,349 240,991 ------------- -------------- In treasury, at cost (165,356) (25,507) ------------- -------------- Outstanding 4,335,149 4,454,887 86,703 89,098 ------------- -------------- ----------------- ---------------- Common shares subscribed 683 1,088 ----------------- ---------------- Retained earnings 65,350 52,486 ----------------- ---------------- Less-Subscriptions receivable 635 1,037 ----------------- ---------------- Total shareholders' equity 152,267 141,818 ----------------- ---------------- $ 732,522 $ 610,512 ================= ================ See accompanying Notes to Consolidated Financial Statements
3 4 CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
QUARTER ENDED SEPTEMBER 30, 1994 SEPTEMBER 30, 1993 ================== ================== GROSS SALES, net of returns and allowances $ 630,323 $ 539,080 ----------------- ------------------- Less - Cash discounts 2,389 2,135 ----------------- ------------------- NET SALES 627,934 536,945 ----------------- ------------------- COST OF MERCHANDISE SOLD 517,328 442,960 ----------------- ------------------- Gross profit 110,606 93,985 ----------------- ------------------- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 92,521 80,409 ----------------- ------------------- DEPRECIATION AND AMORTIZATION 4,124 3,636 ----------------- ------------------- Income from operations 13,961 9,940 ----------------- ------------------- OTHER INCOME, net 699 318 ----------------- ------------------- INTEREST EXPENSE 3,161 1,974 ----------------- ------------------- Income before provision for income taxes and cumulative effect of accounting change 11,499 8,284 ----------------- ------------------- PROVISION FOR INCOME TAXES Current 5,293 3,150 ----------------- ------------------- Deferred (349) (290) ----------------- ------------------- Total provision for income taxes 4,944 2,860 ----------------- ------------------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 6,555 5,424 ----------------- ------------------- CUMULATIVE EFFECT ON PRIOR YEARS OF CHANGE IN ACCOUNTING FOR POSTRETIREMENT BENEFITS --- --- ----------------- ------------------- NET INCOME 6,555 5,424 ================= =================== INCOME PER SHARE OF COMMON STOCK BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE $ 1.51 $ 1.20 ----------------- ------------------- NET INCOME PER SHARE OF COMMON STOCK $ 1.51 $ 1.20 ================= =================== DIVIDENDS Preferred - $.25 per share $ 3 $ 2 ----------------- ------------------- Common - $.30 per share 1,300 1,351 ----------------- ------------------- $ 1,303 $ 1,353 ================= =================== See accompanying Notes to Consolidated Financial Statements
4 5 CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
NINE MONTHS ENDED SEPTEMBER 30, 1994 SEPTEMBER 30, 1993 ================== ================== GROSS SALES, net of returns and allowances $ 1,731,675 $ 1,509,346 ------------------ -------------------- Less - Cash discounts 6,369 6,116 ------------------ -------------------- NET SALES 1,725,306 1,503,230 ------------------ -------------------- COST OF MERCHANDISE SOLD 1,415,278 1,237,463 ------------------ -------------------- Gross profit 310,028 265,767 ------------------ -------------------- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 261,918 232,920 ------------------ -------------------- DEPRECIATION AND AMORTIZATION 11,765 10,799 ------------------ -------------------- Income from operations 36,345 22,048 ------------------ -------------------- OTHER INCOME, net 1,698 1,250 ------------------ -------------------- INTEREST EXPENSE 8,567 7,471 ------------------ -------------------- Income before provision for income taxes and cumulative effect of accounting change 29,476 15,827 ------------------ -------------------- PROVISION FOR INCOME TAXES Current 13,479 6,173 ------------------ -------------------- Deferred (804) (446) ------------------ -------------------- Total provision for income taxes 12,675 5,727 ------------------ -------------------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 16,801 10,100 ------------------ -------------------- CUMULATIVE EFFECT ON PRIOR YEARS OF CHANGE IN ACCOUNTING FOR POSTRETIREMENT BENEFITS --- 45,000 ------------------ -------------------- NET INCOME (LOSS) 16,801 (34,900) ================== ==================== INCOME PER SHARE OF COMMON STOCK BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE (NOTE 2) $ 3.83 $ 2.24 ------------------ -------------------- NET INCOME (LOSS) PER SHARE OF COMMON STOCK (NOTE 2) $ 3.83 $ (7.75) ================== ==================== DIVIDENDS Preferred - $.75 per share $ 7 $ 7 ------------------ -------------------- Common - $.90 per share 3,930 4,074 ------------------ -------------------- $ 3,937 $ 4,081 ================== ==================== See accompanying Notes to Consolidated Financial Statements
5 6 CONSOLIDATED STATEMENTS OF CASH FLOWS ------------------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
NINE MONTHS ENDED SEPTEMBER 30, 1994 1993 ==== ==== CASH FLOWS FROM OPERATIONS Income before cumulative effect of accounting change $ 16,801 $ 10,100 ------------------ ------------------ Adjustments to reconcile income before cumulative effect of accounting change to cash provided by operations: Depreciation and amortization 11,765 10,799 ------------------ ------------------ Deferred income taxes (804) (446) ------------------ ------------------ Changes in assets and liabilities: Trade receivables (48,657) (23,796) ------------------ ------------------ Merchandise inventory (45,160) (9,571) ------------------ ------------------ Other current assets (1,063) 1,493 ------------------ ------------------ Other assets (1,068) 938 ------------------ ------------------ Trade accounts payable 54,764 32,783 ------------------ ------------------ Accrued payroll and benefit costs (2,134) (5,563) ------------------ ------------------ Other accrued liabilities 22,845 8,891 ------------------ ------------------ (9,512) 15,528 ------------------ ------------------ Net cash provided by operations 7,289 25,628 ------------------ ------------------ CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property 133 138 ------------------ ------------------ Capital expenditures for property (15,829) (9,893) ------------------ ------------------ Net cash used by investing activities (15,696) (9,755) ------------------ ------------------ CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in notes payable to banks 10,187 (3,158) ------------------ ------------------ Proceeds from long-term debt 35,000 10,000 ------------------ ------------------ Repayment of long-term debt (4,521) (2,387) ------------------ ------------------ Principal payments under capital equipment leases (3,801) (3,393) ------------------ ------------------ Sale of common stock 399 6,135 ------------------ ------------------ Purchase of treasury stock (2,814) (1,833) ------------------ ------------------ Dividends paid (8,847) (8,619) ------------------ ------------------ Net cash flow provided (used) by financing activities 25,603 (3,255) ------------------ ------------------ NET INCREASE IN CASH 17,196 12,618 ------------------ ------------------ CASH, BEGINNING OF YEAR 17,332 16,538 ------------------ ------------------ CASH, END OF THIRD QUARTER $ 34,528 $ 29,156 ================== ================== See accompanying Notes to Consolidated Financial Statements
6 7 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AND OTHER INFORMATION -------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data) Note 1 - - ------ The condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. In the opinion of the Company, the quarterly report includes all adjustments, consisting of normal recurring accruals, necessary for the fair presentation of the financial statements presented. Such interim financial information is subject to year-end adjustments and independent audit. Results for interim periods are not necessarily indicative of results to be expected for the full year. Note 2 - - ------
NINE MONTHS 1994 NINE MONTHS 1993 ================ ================ Earnings for Nine Months Before Cumulative Effect of Accounting Change $ 16,801 $ 10,100 ------------------ --------------------- Cumulative Effect on Prior Years of Change in Accounting for Postretirement Benefits --- (45,000) ------------------ --------------------- Earnings (Loss) for Nine Months $ 16,801 $ (34,900) ------------------ --------------------- Dividends on Preferred Stock 7 7 ------------------ --------------------- Available for Common Stock $ 16,794 $ (34,907) ------------------ --------------------- Average Common Shares Outstanding 4,381,329 4,504,039 ------------------ --------------------- Earnings Per Share Before Cumulative Effect of Accounting Change $ 3.83 $ 2.24 ------------------ --------------------- Earnings (Loss) Per Share $ 3.83 $ (7.75) ------------------ ---------------------
7 8 MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS --------------------------------------------- (Dollars Stated in Thousands) RESULTS OF OPERATIONS - - --------------------- Net sales in the first nine months of 1994 were 14.8% higher than in the first nine months of 1993. The higher net sales resulted from improvements in the market sectors of the economy in which the Company operates. Gross profit in the first nine months of 1994 increased $44,261 (16.7%) compared to the first nine months of 1993 primarily due to increased sales in the electrical and communication markets. The increase in selling, general and administrative expenses in the first nine months of 1994 compared to the first nine months of 1993 occurred largely because of adjustments in personnel complement and adjustments in compensation and related expenses. Interest charges increased in the first nine months of 1994 compared to the first nine months of 1993 primarily due to increased levels of borrowing incurred to finance higher levels of inventories and receivables. Interest rates on 1994 short-term borrowings have been generally higher than for the same period in 1993. The combined effect of the increases in gross profits and other income, together with increases in selling, general and administrative expenses, interest charges and depreciation and amortization, resulted in an increase in pretax earnings prior to the cumulative effect of the accounting change of $13,649 in the first nine months of 1994 compared to the same period in 1993. The Company adopted Statement of Financial Accounting Standards (SFAS) No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions", on January 1, 1993 on the immediate recognition basis. The after-tax impact of the accounting change decreased nine months 1993 earnings $45,000, or $9.99 per share. 8 9 MANAGEMENT'S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS --------------------------------------------- (Dollars Stated in Thousands) FINANCIAL CONDITION AND LIQUIDITY - - --------------------------------- The financial condition of the Company continues to be strong. At September 30, 1994, current assets exceeded current liabilities by $149,786, up $29,867 from December 31, 1993. The current assets at September 30, 1994 were sufficient to meet the cash needs required to pay current liabilities. The Company does not have any plans or commitments which would require significant amounts of additional working capital. At September 30, 1994, the Company had available to it unused lines of credit amounting to $112,000. These lines are available to meet short- term cash requirements of the Company. Bank borrowings outstanding during 1994 through September 30 ranged from a minimum of $54,000 to a maximum of $132,000. The Company has funded its capital requirements from operations, stock issuances to its employees and long term debt. In May, 1994, the Company received the proceeds from a ten-year note for $35,000 at a fixed interest rate of 6.25% with principal payable in five equal annual installments in each of the years 2000 through 2004. The note agreement has various covenants which limit the Company's ability to make investments, pay dividends, incur debt, dispose of property, and issue equity securities. The Company is also required to maintain certain financial ratios as defined in the agreement. During the first nine months of 1994, cash provided by operations amounted to $7,289 which was $18,339 less than the cash provided by operations in the first nine months of 1993. Cash provided from the sale of common stock and proceeds received on stock subscriptions amounted to $399 in the first nine months of 1994. Additional cash of approximately $139 will be provided in the remainder of 1994 as a result of payments to be made for stock subscribed to by employees under the 1992 Common Stock Purchase Plan. 9 10 PART II: OTHER INFORMATION ---------------------------- Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits furnished in accordance with provisions of Item 7 of Regulation S-K. (2) None (4) None (11) None (15) None (18) None (19) None (20) None (23) None (24) None (25) None (28) None (b) Reports on Form 8-K No reports on Form 8-K have been filed during the quarter for which this report is filed. 10 11 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. November 10, 1994 GRAYBAR ELECTRIC COMPANY, INC. ------------------------- (Date) /S/ E. A. McGRATH ------------------------------ E. A. McGRATH PRESIDENT /S/ J. R. SEATON ------------------------------ J. R. SEATON VICE PRESIDENT AND COMPTROLLER 11 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS DEC-31-1994 JAN-01-1994 SEP-30-1994 34,528 0 305,291 0 213,087 564,068 251,219 106,222 732,522 414,282 92,223 86,703 0 166 65,398 732,522 1,725,306 1,725,306 1,415,278 1,415,278 273,683 0 8,567 29,476 12,675 16,801 0 0 0 16,801 3.83 3.83
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