-----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, R1LUD2IUIvesPlyYJFNT2zgh44S82D5+TNteHuxH+OW4VWxZKUmxVgsvlf13scxW t2+RjiwDRGOAbkhqfrF1Yg== 0000950124-97-004590.txt : 19970912 0000950124-97-004590.hdr.sgml : 19970912 ACCESSION NUMBER: 0000950124-97-004590 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970903 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: CROWLEY MILNER & CO CENTRAL INDEX KEY: 0000025871 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 380454910 STATE OF INCORPORATION: MI FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-01594 FILM NUMBER: 97674444 BUSINESS ADDRESS: STREET 1: 2301 W LAFAYETTE CITY: DETROIT STATE: MI ZIP: 48216 BUSINESS PHONE: 3139622400 MAIL ADDRESS: STREET 1: 2301 WEST LAFAYETTE CITY: DETROIT STATE: MI ZIP: 48216 11-K 1 FORM 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K Annual Report pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 1996 Commission File Number 1-1594 A. Full title of the plan and address of the plan, if different from that of the issuer named below: Second Amended and Restated CROWLEY, MILNER & COMPANY PROFIT SHARING PLAN effective February 1, 1990 B. Name of issuer of securities held pursuant to the plan and the address of its principal executive offices: CROWLEY, MILNER AND COMPANY 2301 West Lafayette Boulevard Detroit, Michigan 48216 The following financial statements and exhibits are files as part of this report: (a) Financial Statements Report of Independent Auditors Statements of Assets Available for Benefits, with Fund Information - December 31, 1996 and 1995 Statements of Changes in Assets Available for Benefits, with Fund Information - Years Ended December 31, 1996 and 1995 Notes to Financial Statements Supplemental Schedules Item 27a - Schedule of Assets Held for Investment Purposes Item 27d - Schedule of Reportable Transactions (b) Exhibits - Consent of Independent Auditors 2 Audited Financial Statements and Schedules Crowley, Milner and Company Profit Sharing Plan Years ended December 31, 1996 and 1995 with Report of Independent Auditors ERNST & YOUNG LLP 3 Crowley, Milner and Company Profit Sharing Plan Audited Financial Statements and Schedules Years ended December 31, 1996 and 1995 Contents Report of Independent Auditors Audited Financial Statements Statement of Assets Available for Benefits, with Fund Information Statement of Changes in Assets Available for Benefits, with Fund Information Notes to Financial Statements Supplemental Schedules Item 27a - Schedule of Assets Held for Investment Purposes Item 27d - Schedule of Reportable Transactions 4 Report of Independent Auditors Administrative Committee Crowley, Milner and Company Profit Sharing Plan We were engaged to audit the accompanying financial statements and supplemental schedules of Crowley, Milner and Company Profit Sharing Plan ("the Plan") as of December 31, 1996 and 1995, and for the years then ended, as listed in the table of contents. These financial statements and schedules are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on the results of our audits. In our opinion, the financial statements referred to above present fairly, in all material respects, assets available for plan benefits of the Plan at December 31, 1996 and December 31, 1995, and the changes in its assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment and reportable transactions as of and for the year ended December 31, 1996, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The fund information in the Statement of Assets Available for Plan Benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the 1996 basic financial statements taken as a whole. The information presented in the "Schedules of Assets Held for Investment Purposes and Reportable Transactions" does not disclose the historical cost of investments. Disclosure of this information is required by the Department of Labor's rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. /s/ Ernst & Young LLP June 13, 1997 5 Crowley, Milner and Company Profit Sharing Plan Statement of Assets Available for Benefits, with Fund Information
Fund Information - ------------------------------------------------------------------------------------------------------------------------------------ Government Intermediate Equity Equity International Loan/ Securities Bond Income Growth Equity Processing Fund Fund Fund Fund Index Fund - ------------------------------------------------------------------------------------------------------------------------------------ December 31, 1996 Assets Investments at fair value (Note 1) Royal Maccabee's separate accounts $526,612 $656,764 $1,063,964 $1,225,893 $161,924 Royal Maccabee's Guaranteed Investment Contract Company Stock ---------- ---------- ---------- ---------- ---------- ---------- Total investments 526,612 656,764 1,063,964 1,225,893 161,924 Receivables: Participant loans receivable $144,804 Participants' contributions 4,276 4,118 6,577 7,831 2,067 Employer's contribution 17,478 13,651 22,544 25,324 6,774 ---------- ---------- ---------- ---------- ---------- ---------- Total Receivables: 21,754 17,769 29,121 33,155 8,841 144,804 Other ---------- ---------- ---------- ---------- ---------- ---------- Assets available for benefits $548,366 $674,533 $1,093,085 $1,259,048 $170,765 $144,804 ========== ========== ========== ========== ========== ========== Fund Information - ------------------------------------------------------------------------------------------------------------------------------------ Royal G.I.C. Maccabee's Collective S&P Money Safty + #2 Safty + #1, 500 Market Crowley Fund #2 Fund Fund Fund Stock Total - ------------------------------------------------------------------------------------------------------------------------------------ December 31, 1996 Assets Investments at fair value (Note 1) Royal Maccabee's separate accounts $1,658,799 $624,668 $346,534 $6,265,158 Royal Maccabee's Guaranteed Investment Contract $1,232,335 1,232,335 Company Stock $231,649 231,649 ---------- ---------- ---------- ---------- ---------- ---------- Total investments 1,232,335 1,658,799 624,668 346,534 231,649 7,729,142 Receivables: Participant loans receivable 144,804 Participants' contributions 8,944 - 4,463 2,567 1,239 42,082 Employer's contribution 62,344 - 15,534 18,180 (19,537) 162,292 ---------- ---------- ---------- ---------- ---------- ---------- Total Receivables: 71,288 - 19,997 20,747 (18,298) 349,178 Other 34,485 34,485 ---------- ---------- ---------- ---------- ---------- ---------- Assets available for benefits $1,303,623 $1,658,799 $644,665 $367,281 $247,836 $8,112,805 ========== ========== ========== ========== ========== ==========
6 Crowley, Milner and Company Profit Sharing Plan Statement of Assets Available for Benefits, with Fund Information Fund Information
- ------------------------------------------------------------------------------------------------------------------------------ Government Intermediate Equity Equity International Loan/ Securities Bond Income Growth Equity Processing Fund Fund Fund Fund Index Fund - ------------------------------------------------------------------------------------------------------------------------------ December 31, 1995 Assets Investments at fair value (Note 1) Royal Maccabee's separate accounts $590,032 $798,979 $1,124,439 $ 1,068,050 $ 112,405 Royal Maccabee's Guaranteed Investment Contract Company Stock Participant loans receivable $ 152,856 Other 26,478 13,832 -------- -------- ---------- ---------- -------- --------- Assets available for benefits $590,032 $798,979 $1,150,917 $1,081,882 $112,405 $ 152,856 ======== ======== ========== ========== ======== ========= Fund Information - ------------------------------------------------------------------------------------------------------------------------- Royal G.I.C. S&P Money Maccabee's Collective 500 Market Crowley Safty Funds Fund Fund Fund Stock Total - ------------------------------------------------------------------------------------------------------------------------- December 31, 1995 Assets Investments at fair value (Note 1) Royal Maccabee's separate accounts $ 1,898,938 $ 534,694 $ 366,108 $ 6,493,645 Royal Maccabee's Guaranteed Investment Contract $1,630,792 $ 1,630,792 Company Stock 83,382 83,382 Participant loans receivable $ 152,856 Other (4,191) (824) (36,160) 8,770 7,905 ---------- ----------- --------- --------- ------- ---------- Assets available for benefits $1,626,601 $ 1,898,114 $ 498,534 $ 366,108 $92,152 $ 8,368,580 ========== =========== ========= ========= ======= ===========
7 Crowley, Milner and Company Profit Sharing Plan Statement of Changes in Assets Available for Benefits, with Fund Information Year Ended December 31, 1996
Fund Information - ------------------------------------------------------------------------------------------------------------------------------------ Government Intermediate Equity Equity International Loan/ Securities Bond Income Growth Equity Processing Fund Fund Fund Fund Index Fund - ------------------------------------------------------------------------------------------------------------------------------------ Additions: Contributions: Participants $ 53,496 $53,300 $ 79,967 $ 85,154 $ 18,232 Crowley, Milner and Company 23,372 17,565 28,242 31,415 8,199 ---------- ---------- ---------- ---------- ---------- ---------- 76,868 70,865 108,209 116,569 26,431 Interest and dividend income - - - - - $ 10,204 ---------- ---------- ---------- ---------- ---------- ---------- 76,868 70,865 108,209 116,569 26,431 10,204 Deductions: Participants' accounts distributed upon withdrawal 129,366 87,352 205,630 159,512 10,455 1,629 Fees 3,259 4,229 6,117 6,635 761 - Other (additions) - - - - - (126) ---------- ---------- ---------- ---------- ---------- ---------- 132,625 91,581 211,747 166,147 11,216 1,503 Realized and unrealized gain on investments 21,520 24,279 138,297 184,666 15,191 - Net transfers between funds (7,429) (128,009) (92,591) 42,078 27,954 (16,753) ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) (41,666) (124,446) (57,832) 177,166 58,360 (8,052) Assets available for benefits beginning of year 590,032 798,979 1,150,917 1,081,882 112,405 152,856 ---------- ---------- ---------- ---------- ---------- ---------- Assets available for benefits end of year $548,366 $674,533 $1,093,085 $1,259,048 $170,765 $144,804 ========== ========== ========== ========== ========== ========== Fund Information - ------------------------------------------------------------------------------------------------------------------------------------ Royal G.I.C. Maccabee's Collective S&P Money Safty + #2 Safty + #1, 500 Market Crowley Fund #2 Fund Fund Fund Stock Total - ------------------------------------------------------------------------------------------------------------------------------------ Additions: Contributions: Participants $ 112,383 $ 43,606 $ 33,796 $ 18,663 $ 498,597 Crowley, Milner and Company 49,771 - 18,454 22,960 42,030 242,008 ---------- ---------- ---------- ---------- ---------- ---------- 162,154 - 62,060 56,756 60,693 740,605 Interest and dividend income 97,845 $165,260 - - 788 274,097 ---------- ---------- ---------- ---------- ---------- ---------- 259,999 165,260 62,060 56,756 61,481 1,014,702 Deductions: Participants' accounts distributed upon withdrawal 595,840 404,575 170,115 57,746 11,475 1,833,695 Fees 8,087 - 2,967 2,401 34,456 Other (additions) (13,571) - - (867) (14,564) ---------- ---------- ---------- ---------- ---------- ---------- 590,356 404,575 173,082 60,147 10,608 1,853,587 Realized and unrealized gain on investments - - 120,033 19,892 59,232 583,110 Net transfers between funds 7,379 - 137,120 (15,328) 45,579 0 ---------- ---------- ---------- ---------- ---------- ---------- Net increase (decrease) (322,978) (239,315) 146,131 893 155,684 (255,775) Assets available for benefits beginning of year 1,626,601 1,898,114 498,534 366,108 92,152 8,368,580 ---------- ---------- ---------- ---------- ---------- ---------- Assets available for benefits end of year $1,303,623 $1,658,799 $644,665 $367,281 $247,836 $8,112,805 ========== ========== ========== ========== ========== ==========
8 Crowley, Milner and Company Profit Sharing Plan Statement of Changes in Assets Available for Benefits, with Fund Information Year Ended December 31, 1995 Fund Information
- ------------------------------------------------------------------------------------------------------------------------------------ Government Intermediate Equity Equity International Loan/ Securities Bond Income Growth Equity Processing Fund Fund Fund Fund Index Fund - ------------------------------------------------------------------------------------------------------------------------------------ Additions: Contributions: Participants $ 59,407 $ 63,867 $ 74,161 $ 73,430 $ 20,134 Crowley, Milner and Company 13,631 8,766 10,435 11,838 3,185 --------- -------- ---------- ---------- --------- ---------- 73,038 72,633 84,596 85,268 23,319 Interest and dividend income - - - - - $ 13,486 --------- --------- ---------- ---------- --------- ---------- 73,038 72,633 84,596 85,268 23,319 13,486 Deductions: Participants' accounts distributed upon withdrawal 164,689 127,334 193,592 158,744 42,991 30,248 Fees 3,451 4,736 6,144 5,758 995 - Other (additions) deductions (39) (753) (772) (364) (111) - --------- --------- ---------- ---------- --------- ---------- 168,101 131,317 198,964 164,138 43,875 30,248 Realized and unrealized gain (loss) on investments 81,753 153,895 348,395 258,392 (5,210) - Net transfers between funds (9,740) (59,444) 76,554 36,691 (193,857) 49,345 --------- --------- ---------- ---------- --------- ---------- Net increase (decrease) (23,050) 35,767 310,581 216,213 (219,623) 32,583 Assets available for benefits beginning of year 613,082 763,212 840,336 865,669 332,028 120,273 --------- --------- ---------- ---------- --------- ---------- Assets available for benefits end of year $ 590,032 $798,979 $1,150,917 $1,081,882 $ 112,405 $ 152,856 ========= ========= ========== ========== ========= ========== - ------------------------------------------------------------------------------------------------------------------------------------ Royal G.I.C. Maccabee's Collective S&P Money Safty + #2 Safty + #1, 500 Market Crowley Fund #2 Fund Fund Fund Stock Total - ------------------------------------------------------------------------------------------------------------------------------------ Additions: Contributions: Participants $ 123,493 $ 30,143 $ 29,379 $ 5,217 $ 479,231 Crowley, Milner and Company 30,411 5,343 18,206 8,820 110,635 ---------- --------- -------- --------- -------- ---------- 153,904 35,486 47,585 14,037 589,866 Interest and dividend income 117,563 $ 201,438 - 26,177 28,982 387,646 ---------- --------- -------- --------- -------- ---------- 271,467 201,438 35,486 73,762 43,019 977,512 Deductions: Participants' accounts distributed upon withdrawal 390,694 737,913 70,027 133,996 4,624 2,054,852 Fees 9,616 267 2,755 2,700 - 36,422 Other (additions) deductions (1,610) 3,321 (819) - - (1,147) ---------- --------- -------- --------- -------- ---------- 398,700 741,501 71,963 136,696 4,624 2,090,127 Realized and unrealized gain (loss) on investments 118,318 - - 955,543 Net transfers between funds 41,717 (235) 98,143 (92,931) 53,757 - ---------- --------- -------- --------- -------- ---------- Net increase (decrease) (85,516) (540,298) 179,984 (155,865) 92,152 (157,072) Assets available for benefits beginning of year 1,712,117 2,438,412 318,550 521,973 - 8,525,652 ---------- --------- -------- --------- -------- ---------- Assets available for benefits end of year $1,626,601 $1,898,114 $498,534 $ 366,108 $ 92,152 $8,368,580 ========== ========== ======== ========= ======== ==========
9 Crowley, Milner and Company Profit Sharing Plan Notes to Financial Statements December 31, 1996 1. Description of the Plan Crowley, Milner and Company Profit Sharing Plan (the Plan) is a voluntary, defined contribution plan established February 1, 1984 covering all eligible employees of Crowley, Milner and Company (the Company). Information about the Plan agreement and the vesting and benefit provisions is contained in the Summary Plan Description, copies of which are available from the Human Resource Office of the Company. Eligible employees may make annual contributions to the Plan up to a maximum amount as allowed by Internal Revenue Code of 1986 (the Code). The Company contributes to employee accounts as stipulated in the Plan. The Company has the right to amend or terminate the Plan at any time. In the event the Plan is terminated, all participants' accounts become fully vested and nonforfeitable. 2. Summary of Significant Accounting Policies The fair value of the participation units owned by the Plan in the Royal Maccabees Life Insurance Company (RMLK) separate accounts represent their cash equivalent values on the last business day of the Plan year. The fair value of the Company s stock is valued at the last reported sales price on the last business day of the Plan year. The Royal Maccabees Life Insurance Company guaranteed investment contract is invested in the Bankers Trust Company - Pyramid Open End GIC Fund and Treasury Yield Plus (SAFTY Funds) at a guaranteed effective annual rate of interest for a specified period of time. Administrative expenses incurred are borne by the Company, and fees associated with the funds are borne by the participants. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates. 3. Tax Status The Internal Revenue Service has ruled that the Plan qualifies under Section 401(a) of the Code and that the trust, therefore, is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the IRC and the Employee Retirement Income Security Act of 1974 to maintain its qualification. The Administrative Committee is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 10 Crowley, Milner and Company Profit Sharing Plan Employee Identification/Plan #: 38-0454910/002 Item 27a - Schedule of Assets Held for Investment Purposes December 31, 1996
Description of Investment Including Identity of Issue, Borrower, Maturity Date, Rate of Interest, Lessor or Similar Party Collateral, Par or Maturity Value - -------------------------------------------------------------------------------------------------------------------- *Royal Maccabees Government Securities Fund Government Securities Account-37,102 units *Royal Maccabees Intermediate Bond Fund Intermediate Bond Account-40,233 units *Royal Maccabees Equity Income Fund Equity Income Account-21,015 units *Royal Maccabees Equity Growth Fund Equity Growth Account-26,132 units *Royal Maccabees International Equity Index International Equity Index Account-11,775 units *Royal Maccabees Guaranteed Investment Contract Flexible Funding Contract Guaranteed through 1/31/99 effective annual rate of credited interest of 9.25% *Royal Maccabees Safety + #2 Fund Flexible Funding Contract effective annual rate of credited interest of 5.54% *Royal Maccabees Safety + #3 Fund Flexible Funding Contract effective annual rate of credited interest at 7.26% *Royal Maccabees Safety + #4 Fund Flexible Funding Contract effective annual rate of credited interest of 7.36% *Royal Maccabees Saf-Tr #5 Fund Flexible Funding Contract effective annual rate of credited interest of 6.00% *Royal Maccabees S&P 500 Fund S&P 500 Account-8,894 units *Royal Maccabees Money Market Fund Money Market Account-12,347 units *Royal Maccabees Short Term Investment Short Term Fund *Crowley Milner and Company Crowley Milner and Company Stock-22,154 shares *Participant loans Various loans 7%-11% Identity of Issue, Borrower, Cost of Proceeds of Current Lessor or Similar Party Acquisition Disposition Value - ----------------------------------------------------------------------------------------------------------------- *Royal Maccabees Government Securities Fund $ 526,612 $ 526,612 *Royal Maccabees Intermediate Bond Fund 656,764 656,764 *Royal Maccabees Equity Income Fund 1,063,964 1,063,964 *Royal Maccabees Equity Growth Fund 1,225,893 1,225,893 *Royal Maccabees International Equity Index 161,924 161,924 *Royal Maccabees Guaranteed Investment Contract 1,658,799 *Royal Maccabees Safety + #2 Fund 79,697 *Royal Maccabees Safety + #3 Fund 201,547 *Royal Maccabees Safety + #4 Fund 166,488 *Royal Maccabees Saf-Tr #5 Fund 127,827 *Royal Maccabees S&P 500 Fund 624,668 624,668 *Royal Maccabees Money Market Fund 346,534 346,534 *Royal Maccabees Short Term Investment 656,776 656,776 *Crowley Milner and Company 231,649 231,649 ---------- ---------- Total investments $7,729,142 $ $7,729,142 ========== ========= ========== *Participant loans $ 144,804 $ $ 144,804 ========== ========= ==========
There were no investment assets reportable as acquired and disposed of during the year. *Party-in-interest. 11 Crowley, Milner and Company Profit Sharing Plan Employee Identification/Plan #: 38-0454910/002 Item 27d - Schedule of Reportable Transactions Year ended December 31, 1996
Expense Description of Asset (Including Incurred Interest Rate and Maturity in Purchase Selling Lease With Identity of Party Involved Case of a Loan) Price Price Rental Transaction - --------------------------------------------------------------------------------------------------------------------------------- Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets: Royal Maccabees Life Insurance Company SAFTY + #1 12 purchases $ 57,343 118 sales $ 963,899 S&P 500 77 purchases 264,735 66 sales 173,653 Equity Growth 73 purchases 335,210 92 sales 172,779 Short-Term Investments 76 purchases 720,084 59 sales 137,816 Current Value of Description of Asset (Including Cost Asset on Net Interest Rate and Maturity in of Transaction Gain Identity of Party Involved Case of a Loan) Asset Date (Loss) - --------------------------------------------------------------------------------------------------------------------------------- Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets: Royal Maccabees Life Insurance Company SAFTY + #1 12 purchases $ 57,343 $ 57,343 118 sales $ 963,899 * S&P 500 77 purchases 264,735 264,735 66 sales 173,653 * Equity Growth 73 purchases 335,210 335,210 92 sales 172,779 * Short-Term Investments 76 purchases 720,084 720,084 59 sales 137,816 *
There were no category i) ii) or iv) reportable transactions. *Trustee does not track cost. All investments are repriced to market on a daily basis. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Crowley, Milner and Company, as the employer-sponsor of the Plan, has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. SECOND AMENDED AND RESTATED CROWLEY, MILNER & COMPANY PROFIT SHARING PLAN EFFECTIVE FEBRUARY 1, 1990 By: CROWLEY, MILNER AND COMPANY By: /S/ John R. Dallacqua ------------------------------ John R. Dallacqua, Vice President-Finance Dated: September 2, 1997 13 EXHIBIT INDEX Exhibit No. Description 23 Consent of Independent Auditors. EX-23 2 CONSENT OF INDEPENDENT AUDITORS 1 EXHIBIT 23 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-61207) pertaining to the Profit Sharing Plan of Crowley, Milner and Company of our report dated June 13, 1997, with respect to the financial statement and schedules of the Crowley, Milner and Company Profit Sharing Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1996. /s/ Ernst & Young LLP July 28, 1997 -----END PRIVACY-ENHANCED MESSAGE-----