-----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, DMT8Zx33WNVbnLs394N3lDYcmoIfjP4X8/DQopLIW4SML93L5vZgLOEuc3GgqQdW 6fIcdGzhAxLhGeDjgTUcmA== 0000929966-95-000015.txt : 19950512 0000929966-95-000015.hdr.sgml : 19950512 ACCESSION NUMBER: 0000929966-95-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUPREME INDUSTRIES INC CENTRAL INDEX KEY: 0000350846 STANDARD INDUSTRIAL CLASSIFICATION: TRUCK & BUS BODIES [3713] IRS NUMBER: 751670945 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08183 FILM NUMBER: 95536810 BUSINESS ADDRESS: STREET 1: 65140 US 33 E STREET 2: PO BOX 237 CITY: GOSHEN STATE: IN ZIP: 46526 BUSINESS PHONE: 2196423070 MAIL ADDRESS: STREET 1: P O BOX 237 STREET 2: 65140 U S 33 EAST CITY: GOSHEN STATE: IN ZIP: 46526 FORMER COMPANY: FORMER CONFORMED NAME: EXPLORATION SURVEYS INC DATE OF NAME CHANGE: 19850813 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) (X) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-8183 SUPREME INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 75-1670945 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 65140 U.S. 33 East, P.O. Box 237 Goshen, Indiana 46526 (Address of principal executive offices) Registrant's telephone number, including area code: (219)642-3070 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 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock ($.10 Par Value) Outstanding at May 4, 1994 Class A 5,791,277 Class B 1,642,882 The index to Exhibits is at page 10 in the sequential numbering system. Total pages:11 SUPREME INDUSTRIES, INC. CONTENTS Part I. Financial Information Pages Item 1. Financial Statements: Consolidated Condensed Balance Sheets 3 & 4 Consolidated Condensed Statements of Income 5 Consolidated Condensed Statements of Cash Flows 6 Notes to Consolidated Condensed Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 & 8 Part II. Other Information 9 Signatures 9 Index to Exhibits 10 Part I. Financial Information Item 1. Financial Statements Supreme Industries, Inc. and Subsidiaries Consolidated Balance Sheets March 31, December 31, 1995 1994 Assets Current assets: Cash and cash equivalents $92,048 $273,720 Accounts receivable, net 21,771,839 15,733,321 Inventories 23,731,948 19,715,520 Deferred income taxes 1,060,572 1,060,572 Other current assets 369,930 228,161 Total current assets 47,026,337 37,011,294 Property, plant and equipment: Land and improvements 1,878,376 1,840,393 Buildings and improvements 7,733,623 7,511,881 Leasehold improvements 4,723,829 4,678,091 Machinery and equipment 15,165,743 14,398,281 29,501,571 28,428,646 Less, Accumulated depreciation and amortization 11,256,857 10,963,180 Property, plant and equipment, net 18,244,714 17,465,466 Intangible assets, net 2,264,487 2,315,314 Other assets 800,000 800,000 Total assets $68,335,538 $57,592,074 The accompanying notes are a part of the consolidated financial statements.
Supreme Industries, Inc. and Subsidiaries Consolidated Balance Sheets, Concluded March 31, December 31, 1995 1994 Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt $2,978,831 $2,947,776 Trade accounts payable 9,655,414 7,401,498 Accrued income taxes payable 1,679,902 812,242 Other accrued liabilities 5,274,747 5,799,353 Total current liabilities 19,588,894 16,960,869 Long-term debt 26,372,494 19,747,322 Deferred income taxes 888,740 888,740 Total liabilities 46,850,128 37,596,931 Stockholders' equity: Class A Common Stock, $.10 par value 577,213 571,499 Class B Common Stock, convertible into Class A Common Stock on a one-for-one basis, $.10 par value 165,800 171,515 Additional paid-in capital 10,953,545 10,953,544 Retained earnings 9,945,338 8,455,071 Treasury stock, at cost, 13,757 shares of Class A Common Stock (156,486) (156,486) Total Stockholders' equity 21,485,410 19,995,143 Total liabilities and stockholders' equity $68,335,538 $57,592,074 The accompanying notes are a part of the consolidated financial statements.
Supreme Industries, Inc. and Subsidiaries Consolidated Statements of Income Three Months Ended March 31, 1995 1994 Revenues $43,669,383 $32,326,318 Costs and expenses: Cost of sales 37,405,360 27,556,902 Selling, general and administrative 3,267,471 2,746,043 Interest 483,285 412,147 41,156,116 30,715,092 Income before income taxes 2,513,267 1,611,226 Income taxes 1,023,000 685,000 Net income $1,490,267 $926,226 Earnings per share: Primary $0.20 $0.12 Fully diluted $0.19 $0.12 Weighted average number of shares of common stock and common stock equivalents: Primary 7,468,625 7,474,056 Fully diluted 8,081,621 8,029,842 The accompanying notes are a part of the consolidated financial statements.
Supreme Industries, Inc. and Subsidiaries Consolidated Statements of Cash Flows Three Months Ended March 31, 1995 1994 Cash flows from operating activities: Net income $1,490,267 $926,226 Depreciation and amortization 431,176 372,294 Amortization of intangibles 50,827 50,828 Gain on sale of equipment (2,894) (29,503) Changes in operating assets and liabilities (7,599,745) (941,838) Net cash provided by (used in) operating activities (5,630,369) 378,007 Cash flows from investing activities: Additions to property, plant and equipment (1,210,424) (1,349,046) Proceeds from sale of property, plant and equipment 2,894 76,643 Net cash used in investing activities (1,207,530) (1,272,403) Cash flows from financing activities: Proceeds from revolving line of credit and other long-term debt 20,400,531 33,868,036 Repayments of revolving line of credit and other long-term debt (13,744,304) (31,274,817) Proceeds from exercise of stock options and warrants --- 621 Net cash provided by financing activities 6,656,227 2,593,840 Increase (decrease) in cash and cash equivalents (181,672) 1,699,444 Cash and cash equivalents, beginning of period 273,720 642,339 Cash and cash equivalents, end of period $92,048 $2,341,783 The accompanying notes are a part of the consolidated financial statements.
SUPREME INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS NOTE A -BASIS OF PRESENTATION AND OPINION OF MANAGEMENT The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all of the information and financial statement disclosures necessary for a fair presentation of consolidated financial position, results of operations and cash flows in conformity with generally accepted accounting principles. In the opinion of management, the information furnished herein includes all adjustments necessary to reflect a fair statement of the interim periods reported. The December 31, 1994 condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by generally accepted accounting principles. NOTE B - INVENTORIES Inventories, which are stated at the lower of cost or market with cost determined on the first-in-first-out method, consist of the following: March 31, December 31, 1995 1994 Raw materials $14,864,026 $11,718,902 Work-in-progress 2,716,238 2,716,238 Finished goods 6,151,684 5,280,380 $23,731,948 $19,715,520
The valuation of raw materials, work-in-progress and finished goods inventories at interim dates is based upon a gross profit percentage method and bills of materials. Since 1989 the Company has had favorable adjustments in the fourth quarter resulting from the annual physical inventories. The Company is continuing to refine its costing procedures for valuation of interim inventories in an effort to minimize the annual book to physical inventory adjustments. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Results of Operations Revenues for the quarter ended March 31, 1995 increased $11,343,065 to $43,669,383 from $32,326,318 for the quarter ended March 31, 1994. Net income for the quarter ended March 31, 1995 increased $564,041 to $1,490,267 from $926,226 for the quarter ended March 31, 1994. The significant increase in revenues can be attributed to continued strong demand for the Company's broad product line at all six manufacturing facilities. While first quarter revenues are benefiting from two price increases implemented in 1994, the majority of the revenue growth can be attributed to increased volume as well as a change in product mix to units with higher individual selling prices. The Company's cost of sales as a percentage of revenue increased slightly for the quarter ended March 31, 1995 when compared to the prior year comparable quarter. The Company experienced significant increases in the cost of aluminum, steel, wood and fiberglass during the last half of 1994 that were not completely offset by the price increases implemented during 1994. The Company's overhead and direct labor expenses improved as a percentage of revenues. The fixed expenses in the Company's overhead pool were responsible for the improvement in the overhead percentage while a change in product mix and productivity improvements were responsible for the improvement in direct labor as a percentage of total revenues. The improvement in net income as a percentage of revenues can be primarily attributed to declines in selling, general and administrative expense and interest expenses as a percentage of revenues. The fixed nature of certain items in selling, general and administrative expenses were responsible for the improvement in this category. The improvement in interest expense as a percentage of revenues, even though interest dollars and borrowings were up, can be attributed to more favorable interest rates on the Company's new "Credit Agreement" entered into on April 25, 1994. Liquidity and Capital Resources Funds available under the Company's revolving credit agreement were sufficient to finance the first quarter 1995 operations, finance capital expenditures and service debt obligations. The Company is currently using its complete availability under the $12,000,000 revolving credit agreement to finance higher receivables and inventories associated with major contracts to be completed and delivered principally in the first six months of the year. The Company anticipates an improvement in credit availability as these contracts are delivered. The ratio of current assets to current liabilities was 2.4 to 1 at March 31, 1995 compared to 2.2 to 1 at December 31, 1994. Capital expenditures were $1,210,424 for the quarter ended March 31, 1995. These expenditures were funded with borrowings under the Company's revolving credit agreement. Historically the Company experiences negative cash flow from operating activities in the first quarter correlating with the significant increases in accounts receivable and inventory requirements associated with major contracts to be delivered in the first six months of the year. The Company anticipates that cash flow from operations and funds available from outside financing will be sufficient to finance the balance of 1995 operations and planned capital expenditures. PART II. OTHER INFORMATION ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits 11 - Statements Regarding Earnings Per Share 27 - Financial Data Schedule b) Reports on Form 8-K - None 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. SUPREME INDUSTRIES, INC. Date: May 9, 1995 By:/s/Robert W. Wilson Executive Vice President, Treasurer, Chief Financial Officer and Director (Principal Financial and Accounting Officer) (Signing on behalf of the Registrant and as Principal Financial Officer) INDEX TO EXHIBITS Exhibit No. Description Page 11 Computation of Earnings Per Share 11 27 Financial Data Schedule 12 EXHIBIT 11-- STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (LOSS) SUPREME INDUSTRIES, INC. (Amount in thousands, except per share data) Three Months Ended March 31, 1995 1994 PRIMARY Average shares outstanding 7,417 7,227 Net effect of dilutive stock options and warrants - based on the treasury stock method using average market price 52 247 TOTAL 7,469 7,474 Net income $1,490 $ 926 Net income per share $ .20 $ .12 FULLY DILUTED Average shares outstanding 7,417 7,227 Net effect of dilutive stock options and warrants - based on the treasury stock method using the period-end market price, if higher than the average market price 109 247 Net effect of subordinated convertible notes 556 556 TOTAL 8,082 8,030 Net income $1,490 $ 926 Interest expense reduction due to assumed conversion of subordinated convertible notes - net of tax 34 32 Net income as adjusted $1,524 $ 958 Net income per share $ 0.19 $ 0.12
EX-27 2
5 3-MOS DEC-31-1995 MAR-31-1995 92,048 0 21,771,839 430,000 23,731,948 47,026,337 29,501,571 11,256,857 68,335,538 19,588,894 26,372,494 743,013 0 0 0 68,335,538 43,669,383 43,669,383 37,405,360 37,405,360 3,267,471 0 483,285 2,513,267 1,023,000 1,490,267 0 0 0 1,490,267 0.20 0.19
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