-----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, CJsIfuML+2fRXBfcDm4WtSAWRtzohCfyb/VT1R47IAQR0Yl3VGlOa1D/uKRZaPyx omVlBPZJ+gD+RIVyExkbDg== 0000950114-95-000196.txt : 19951208 0000950114-95-000196.hdr.sgml : 19951208 ACCESSION NUMBER: 0000950114-95-000196 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 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: 95589692 BUSINESS ADDRESS: STREET 1: 34 N MERAMEC AVE CITY: ST LOUIS STATE: MO ZIP: 63105 BUSINESS PHONE: 3145129200 MAIL ADDRESS: STREET 1: P O BOX 7231 CITY: ST LOUIS STATE: MO ZIP: 63177 10-Q 1 GRAYBAR ELECTRIC COMPANY 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, 1995 -------------------------------- 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 incorporation (I.R.S. Employer 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) 512 - 9200 ------------------ 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, 1995: 4,482,402 -------------------- (Number of Shares) 2 PART I ------ CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
SEPTEMBER 30, 1995 DECEMBER 31, 1994 ------------------- ------------------- CURRENT ASSETS Cash $ 40,420 $ 17,144 ------------------- ------------------- Trade receivables 339,982 301,525 ------------------- ------------------- Merchandise inventory 268,919 211,482 ------------------- ------------------- Other current assets 12,953 12,273 ------------------- ------------------- Total current assets 662,274 542,424 ------------------- ------------------- PROPERTY Land 20,031 19,297 ------------------- ------------------- Buildings and permanent fixtures 225,025 210,623 ------------------- ------------------- Capital equipment leases 22,428 32,235 ------------------- ------------------- Less-Accumulated depreciation 109,588 108,722 ------------------- ------------------- Net property 157,896 153,433 ------------------- ------------------- DEFERRED FEDERAL INCOME TAXES 15,713 15,234 ------------------- ------------------- OTHER ASSETS 9,845 8,695 ------------------- ------------------- $ 845,728 $ 719,786 =================== =================== CURRENT LIABILITIES Notes payable to banks $ 130,537 $ 80,488 ------------------- ------------------- Current portion of long-term debt 16,050 13,457 ------------------- ------------------- Trade accounts payable 291,165 258,656 ------------------- ------------------- Income taxes 5,939 --- ------------------- ------------------- Other accrued taxes 8,358 7,475 ------------------- ------------------- Accrued payroll and benefit costs 28,765 35,075 ------------------- ------------------- Dividends payable --- 4,801 ------------------- ------------------- Other payables and accruals 27,522 6,338 ------------------- ------------------- Total current liabilities 508,336 406,290 ------------------- ------------------- POSTRETIREMENT BENEFITS LIABILITY 75,037 74,141 ------------------- ------------------- LONG TERM DEBT 91,989 90,212 ------------------- -------------------
2 3 CONSOLIDATED BALANCE SHEETS --------------------------- (Dollars Stated in Thousands) (Except for Share and Per Share Data)
SEPTEMBER 30, 1995 DECEMBER 31, 1994 -------------------- ------------------- SHAREHOLDERS' EQUITY CAPITAL STOCK Preferred: --------- Par value $20 per share Authorized 300,000 shares SHARES ------ 1995 1994 ---- ---- Issued to voting trustees 8,248 8,248 ------------ ----------- In treasury, at cost (465) (60) ------------ ------------ Outstanding 7,783 8,188 156 164 ------------ ------------ -------------------- ------------------- Common: ------ Stated value $20 per share Authorized 7,500,000 shares SHARES ------ 1995 1994 ---- ---- Issued to voting trustees 4,362,504 4,347,757 ------------ ------------ Issued to shareholders 251,139 250,893 ------------ ------------ In treasury, at cost (128,782) (5,708) ------------ ------------ Outstanding 4,484,861 4,592,942 89,697 91,859 ------------ ------------ -------------------- ------------------- Common shares subscribed 186 486 -------------------- ------------------- Retained earnings 80,475 57,081 -------------------- ------------------- Less-Subscriptions receivable 148 447 -------------------- ------------------- TOTAL SHAREHOLDERS' EQUITY 170,366 149,143 -------------------- ------------------- $ 845,728 $ 719,786 ==================== =================== 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, 1995 SEPTEMBER 30, 1994 -------------------- -------------------- GROSS SALES, net of returns and allowances $ 731,067 $ 630,323 -------------------- -------------------- Less - Cash discounts 2,417 2,389 -------------------- -------------------- NET SALES 728,650 627,934 -------------------- -------------------- COST OF MERCHANDISE SOLD 600,420 517,328 -------------------- -------------------- Gross profit 128,230 110,606 -------------------- -------------------- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 101,998 92,521 -------------------- -------------------- DEPRECIATION AND AMORTIZATION 4,492 4,124 -------------------- -------------------- Income from operations 21,740 13,961 -------------------- -------------------- OTHER INCOME, net 903 699 -------------------- -------------------- INTEREST EXPENSE 4,426 3,161 -------------------- -------------------- Income before provision for income taxes 18,217 11,499 -------------------- -------------------- PROVISION FOR INCOME TAXES Current 7,046 5,293 -------------------- -------------------- Deferred (165) (349) -------------------- -------------------- Total provision for income taxes 6,881 4,944 -------------------- -------------------- NET INCOME 11,336 6,555 ==================== ==================== NET INCOME PER SHARE OF COMMON STOCK $ 2.52 $ 1.42 ==================== ==================== DIVIDENDS Preferred - $.25 per share $ 2 $ 3 -------------------- -------------------- Common - $.30 per share 1,348 1,300 -------------------- -------------------- $ 1,350 $ 1,303 ==================== ==================== Restated for the declaration of a 6.25% stock dividend in 1994. 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, 1995 SEPTEMBER 30, 1994 -------------------- -------------------- GROSS SALES, net of returns and allowances $ 2,055,047 $ 1,731,675 -------------------- -------------------- Less - Cash discounts 7,043 6,369 -------------------- -------------------- NET SALES 2,048,004 1,725,306 -------------------- -------------------- COST OF MERCHANDISE SOLD 1,682,631 1,415,278 -------------------- -------------------- Gross profit 365,373 310,028 -------------------- -------------------- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 295,174 261,918 -------------------- -------------------- DEPRECIATION AND AMORTIZATION 13,177 11,765 -------------------- -------------------- Income from operations 57,022 36,345 -------------------- -------------------- OTHER INCOME, net 2,092 1,698 -------------------- -------------------- INTEREST EXPENSE 12,542 8,567 -------------------- -------------------- Income before provision for income taxes 46,572 29,476 -------------------- -------------------- PROVISION FOR INCOME TAXES Current 19,574 13,479 -------------------- -------------------- Deferred (479) (804) -------------------- -------------------- Total provision for income taxes 19,095 12,675 -------------------- -------------------- NET INCOME 27,477 16,801 ==================== ==================== NET INCOME PER SHARE OF COMMON STOCK (NOTE 2) $ 6.05 $ 3.61 ==================== ==================== DIVIDENDS Preferred - $.75 per share $ 6 $ 7 -------------------- -------------------- Common - $.90 per share 4,077 3,930 -------------------- -------------------- $ 4,083 $ 3,937 ==================== ==================== 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, 1995 1994 ---------------- --------------- CASH FLOWS FROM OPERATIONS Net Income $ 27,477 $ 16,801 ---------------- --------------- Adjustments to reconcile net income to cash provided (used) by operations: Depreciation and amortization 13,177 11,765 ---------------- --------------- Deferred income taxes (479) (804) ---------------- --------------- Changes in assets and liabilities: Trade receivables (38,457) (48,657) ---------------- --------------- Merchandise inventory (57,437) (45,160) ---------------- --------------- Other current assets (680) (1,063) ---------------- --------------- Other assets (1,150) (1,068) ---------------- --------------- Trade accounts payable 32,509 54,764 ---------------- --------------- Accrued payroll and benefit costs (6,310) (2,134) ---------------- --------------- Other accrued liabilities 28,902 22,845 ---------------- --------------- (29,925) (9,512) ---------------- --------------- Net cash provided (used) by operations (2,448) 7,289 ---------------- --------------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property 474 133 ---------------- --------------- Capital expenditures for property (17,514) (15,829) ---------------- --------------- Net cash used by investing activities (17,040) (15,696) ---------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES Net increase in notes payable to banks 50,049 10,187 ---------------- --------------- Proceeds from long-term debt 14,000 35,000 ---------------- --------------- Repayment of long-term debt (7,460) (4,521) ---------------- --------------- Principal payments under capital equipment leases (2,770) (3,801) ---------------- --------------- Sale of common stock 299 399 ---------------- --------------- Purchase of treasury stock (2,470) (2,814) ---------------- --------------- Dividends paid (8,884) (8,847) ---------------- --------------- Net cash flow provided by financing activities 42,764 25,603 ---------------- --------------- NET INCREASE IN CASH 23,276 17,196 ---------------- --------------- CASH, BEGINNING OF YEAR 17,144 17,332 ---------------- --------------- CASH, END OF THIRD QUARTER $ 40,420 $ 34,528 ================ =============== 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 1995 NINE MONTHS 1994 ------------------ ---------------------- Earnings for Nine Months $ 27,477 $ 16,801 ------------------ ---------------------- Dividends on Preferred Stock 6 7 ------------------ ---------------------- Available for Common Stock $ 27,471 $ 16,794 ------------------ ---------------------- Average Common Shares Outstanding 4,540,207 4,655,162 ------------------ ---------------------- Earnings Per Share $ 6.05 $ 3.61 ------------------ ---------------------- Restated for the declaration of a 6.25% stock dividend in 1994. Prior to adjusting for the stock dividend, the average common shares outstanding were 4,381,329.
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 1995 were 18.7% higher than in the first nine months of 1994. 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 1995 increased $55,345 (17.9%) compared to the first nine months of 1994 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 1995 compared to the first nine months of 1994 occurred largely because of adjustments in personnel complement and adjustments in compensation and related expenses. Interest charges increased in the first nine months of 1995 compared to the first nine months of 1994 primarily due to increased levels of borrowing incurred to finance higher aggregate levels of inventory and receivables. Interest rates on 1995 short-term borrowings have been higher than for the same period in 1994. 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 of $17,096 in the first nine months of 1995 compared to the same period in 1994. 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, 1995, current assets exceeded current liabilities by $153,938, up $17,804 from December 31, 1994. The current assets at September 30, 1995 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, 1995, the Company had available to it unused lines of credit amounting to $148,000. These lines are available to meet short- term cash requirements of the Company. Bank borrowings outstanding during 1995 through September 30 ranged from a minimum of $77,000 to a maximum of $158,000. The Company has funded its capital requirements from operations, stock issuances to its employees and long and short term debt. In February, 1995, the Company received the proceeds from a ten-year note for $4,000 at a fixed interest rate of 8.53% with principal payable in quarterly installments beginning in June, 1995. In April, 1995, the Company received the proceeds from a five-year note for $10,000 at a fixed interest rate of 7.67% with principal payable in five equal annual installments beginning in April, 1996. During the first nine months of 1995, cash used by operations was $2,448 compared to $7,289 cash provided by operations in the first nine months of 1994. Cash provided from the sale of common stock and proceeds received on stock subscriptions amounted to $299 in the first nine months of 1995. Additional cash of approximately $148 will be provided in the remainder of 1995 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 13, 1995 GRAYBAR ELECTRIC COMPANY, INC. -------------------------- (Date) /S/ C. L. HALL ------------------------------ C. L. HALL PRESIDENT /S/ J. R. SEATON ------------------------------ J. R. SEATON VICE PRESIDENT AND COMPTROLLER 11 EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 40,420 0 339,982 0 268,919 12,953 267,484 109,588 845,728 508,336 91,989 89,697 0 156 80,513 845,728 2,048,004 2,048,004 1,682,631 1,682,631 308,351 0 12,542 46,572 19,095 27,477 0 0 0 27,477 6.05 6.05
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