-----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, NVl/A+Q1CakpUm/MR0jEi1PfOGK1s1X+laHC3YuQLZaaQbGRIL7cfWIkyiqPlEsL qnyir+6nJa4/a7IzernAkA== 0000892569-96-001806.txt : 19960911 0000892569-96-001806.hdr.sgml : 19960911 ACCESSION NUMBER: 0000892569-96-001806 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960803 FILED AS OF DATE: 19960910 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FURON CO CENTRAL INDEX KEY: 0000037755 STANDARD INDUSTRIAL CLASSIFICATION: GASKETS, PACKAGING AND SEALING DEVICES & RUBBER & PLASTIC HOSE [3050] IRS NUMBER: 951947155 STATE OF INCORPORATION: CA FISCAL YEAR END: 0203 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08088 FILM NUMBER: 96627996 BUSINESS ADDRESS: STREET 1: 1199 SOUTH CHILLICOTHE ROAD CITY: AURORA STATE: OH ZIP: 44202 BUSINESS PHONE: 7148315350 FORMER COMPANY: FORMER CONFORMED NAME: FLUOROCARBON CO DATE OF NAME CHANGE: 19900322 10-Q 1 QUARTERLY REPORT FOR QUARTER ENDED AUGUST 3, 1996 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------------- FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED AUGUST 3, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-8088 FURON COMPANY (Exact name of registrant as specified in its charter) California 95-1947155 - ---------------------------- ---------------- (State or other jurisdiction (I.R.S. Employer of incorporation or Identification No.) organization) 29982 Ivy Glenn Drive Laguna Niguel, CA 92677 - ---------------------------- ---------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (714) 831-5350 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 --- --- Number of shares of common stock outstanding as of September 6, 1996: 8,967,111. 1 2 FURON COMPANY INDEX PART I - FINANCIAL INFORMATION
PAGE NO. -------- Item 1. Financial Statements Condensed Consolidated Balance Sheets August 3, 1996 and February 3, 1996 3 Condensed Consolidated Statements of Income Three and six months ended August 3, 1996 and July 29, 1995 5 Condensed Consolidated Statements of Cash Flows Three and six months ended August 3, 1996 and July 29, 1995 6 Notes to Condensed Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II - OTHER INFORMATION 14
2 3 ITEM 1. FINANCIAL STATEMENTS FURON COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (Unaudited)
August 3, February 3, In thousands 1996 1996 - --------------------------------------------------------------------------------------------- Current assets: Cash and cash equivalents $ -- $ -- Accounts receivable, less allowance for doubtful accounts of $1,471 at August 3, 1996 and $1,367 at February 3, 1996 52,971 51,681 Inventories 45,178 39,827 Deferred income taxes 5,102 5,178 Prepaid expenses and other assets 4,696 5,367 -------- -------- Total current assets 107,947 102,053 Property, plant & equipment, at cost: Land 2,479 1,305 Buildings and leasehold improvements 19,865 18,044 Machinery and equipment 136,377 128,396 -------- -------- 158,721 147,745 Less accumulated depreciation and amortization (74,167) (68,093) -------- -------- Net property, plant and equipment 84,554 79,652 Intangible assets, at cost less accumulated amortization of $28,087 at August 3, 1996 and $26,612 at February 3, 1996 25,420 23,543 Other assets 5,779 6,236 -------- -------- $223,700 $211,484 ======== ========
See accompanying notes. 3 4 FURON COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited)
August 3, February 3, In thousands, except share data 1996 1996 - ----------------------------------------------------------------------------------------------- Current liabilities: Cash, less checks outstanding $ 2,820 $ 1,052 Accounts payable 19,691 18,851 Salaries, wages and related benefits payable 9,659 11,101 Current portion of long-term debt 309 278 Other current liabilities 10,341 10,345 -------- -------- Total current liabilities 42,820 41,627 Long-term debt 39,137 38,443 Other long-term liabilities 22,292 20,807 Deferred income taxes 7,843 7,725 Commitments and contingencies Stockholders' equity: Preferred stock without par value, 2,000,000 shares authorized, none issued or outstanding -- -- Common stock without par value, 15,000,000 shares authorized, 8,967,111 shares issued and outstanding at August 3, 1996 and 8,906,905 at February 3, 1996 38,401 37,575 Foreign currency translation adjustment 855 403 Unearned ESOP shares (3,314) (3,205) Unearned compensation (376) (556) Additional pension liability (1,649) (1,649) Retained earnings 77,691 70,314 -------- -------- Total stockholders' equity 111,608 102,882 ======== ======== $223,700 $211,484 ======== ========
See accompanying notes. 4 5 FURON COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three months ended Six months ended ------------------ ---------------- August 3, July 29, August 3, July 29, In thousands, except per share amounts 1996 1995 1996 1995 - --------------------------------------------------------------------------------------------------------- Net sales $96,216 $82,300 $190,979 $170,753 Cost of sales 70,170 59,957 138,436 122,850 ------- ------- -------- -------- Gross profit 26,046 22,343 52,543 47,903 Selling, general and administrative expenses 20,340 18,123 40,345 38,503 Other (income), net (873) (736) (1,963) (1,512) Interest expense 678 787 1,354 1,581 ------- ------- -------- -------- Income before income taxes 5,901 4,169 12,807 9,331 Provision for income taxes 2,006 1,459 4,354 3,266 ------- ------- -------- -------- Net income $ 3,895 $ 2,710 $ 8,453 $ 6,065 ======= ======= ======== ======== Net income per share of Common Stock $ 0.43 $ 0.30 $ 0.93 $ 0.67 ======= ======= ======== ========
See accompanying notes. 5 6 FURON COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three months ended Six months ended ------------------ ---------------- August 3, July 29, August 3, July 29, In thousands 1996 1995 1996 1995 - ------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 3,895 $ 2,710 $ 8,453 $ 6,065 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 3,420 2,465 6,708 4,975 Amortization 867 925 1,645 1,957 Provision for losses on accounts receivable 182 155 287 260 Increase in deferred income taxes -- 235 76 235 Loss on sale of assets -- 50 -- 61 Working capital changes, net of acquisitions and disposals: Accounts receivable 2,083 6,860 2,105 5,629 Inventories (683) 1,009 (3,121) (4,603) Accounts payable and accrued liabilities (83) (6,332) (1,650) (7,124) Income taxes payable 750 (709) 1,308 (58) Other current assets and liabilities, net 121 (176) 356 1,042 Changes in other long-term operating assets and liabilities 530 (190) (899) (165) -------- ------- -------- -------- Net cash provided by operating activities 11,082 7,002 15,268 8,274 INVESTING ACTIVITIES Acquisition of businesses (777) -- (4,071) (23,763) Purchases of property, plant and equipment (6,497) (3,679) (10,852) (7,021) Proceeds from sale of divestitures 373 200 779 767 Proceeds from sale of equipment 26 1,391 50 1,438 Proceeds from notes receivable 1 593 5 593 Increase in notes receivable -- (1,109) -- (1,100) -------- ------- -------- -------- Net cash used in investing activities (6,874) (2,604) (14,089) (29,086) FINANCING ACTIVITIES Proceeds from long-term debt 6,000 2,008 13,000 23,008 Principal payments on long-term debt (10,177) (4,002) (14,177) (7,003) Proceeds from issuance of common stock 72 163 769 764 Loan to ESOP (243) (231) (566) (231) Principal payments received from loan to ESOP 458 384 458 384 Dividends paid on common stock (538) (532) (1,076) (1,063) -------- ------- -------- -------- Net cash provided by (used in) financing activities (4,428) (2,210) (1,592) 15,859 EFFECT OF EXCHANGE RATE CHANGES ON CASH 220 (145) 413 521 -------- ------- -------- -------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- 2,043 -- (4,432) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD -- -- -- 6,475 -------- ------- -------- -------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ -- $ 2,043 $ -- $ 2,043 ======== ======= ======== ========
See accompanying notes. 6 7 FURON COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS August 3, 1996 (Unaudited) 1. GENERAL The accompanying unaudited consolidated financial statements have been condensed in certain respects and should therefore be read in conjunction with the consolidated financial statements and related notes, thereto, contained in the Company's Annual Report to Shareholders on Form 10-K for the fiscal year ended February 3, 1996. Certain reclassifications have been made to prior year amounts in order to be consistent with the current year presentation. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary (consisting only of normal recurring adjustments) to present fairly the financial position of the Company as of August 3, 1996, and the results of operations and cash flows for the three and six months ended August 3, 1996 and July 29, 1995. Results of the Company's operations for the three and six months ended August 3, 1996 are not necessarily indicative of the results to be expected for the full year. 2. INVENTORIES Inventories, stated at the lower of cost (first-in, first-out) or market, are summarized as follows:
August 3, February 3, In thousands 1996 1996 - -------------------------------------------------------------------------- Raw materials and purchased parts $16,780 $13,604 Work-in-process 12,515 11,503 Finished goods 15,883 14,720 ------- ------- $45,178 $39,827 ======= =======
3. INTANGIBLES Intangible assets, primarily acquired in business combinations, net of accumulated amortization, are summarized as follows:
August 3, February 3, In thousands 1996 1996 - ------------------------------------------------------------------------- Goodwill $10,492 $ 9,113 Other intangible assets 14,928 14,430 ------- ------- $25,420 $23,543 ======= =======
7 8 FURON COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS August 3, 1996 (Unaudited) 4. LONG-TERM DEBT Long-term debt is summarized as follows:
August 3, February 3, In thousands 1996 1996 - --------------------------------------------------------------------------- Loans under bank credit agreements due through fiscal year 2000 $37,000 $38,000 Other 2,446 721 ------- ------- Total long-term debt 39,446 38,721 Less current portion 309 278 ------- ------- Due after one year $39,137 $38,443 ======= =======
For the three and six months ended August 3, 1996, the weighted average interest rate on the loans under bank credit agreements was 6.2% and 6.3%, respectively. In August 1988, the Company entered into an 8-year Interest Rate Swap agreement. The notional amount of the swap totaled $2.0 million at August 3, 1996. The swap agreement effectively changes the Company's interest rate on $2.0 million of its variable borrowings to a fixed interest rate of 9.938%. Interest paid for the three and six months ended August 3, 1996 was $542,000 and $1,317,000, respectively. Interest paid for the three and six months ended July 29, 1995 was $822,000 and $1,450,000, respectively. 5. STOCKHOLDERS' EQUITY During June 1996, the Company contributed $662,000 to the Employee Stock Ownership Plan (ESOP) for the plan year ended April 30, 1996. Of this amount, $458,000 served to reduce loans previously made to the plan. In addition, during the first six months of the fiscal year, the Company loaned $566,000 to the ESOP which is presented as unearned ESOP shares in the accompanying condensed consolidated balance sheet. The ESOP used the funds to acquire 25,000 shares of the Company's common stock from a director of the Company. 8 9 FURON COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS August 3, 1996 (Unaudited) 6. INCOME TAXES The Company's effective tax rate for the three and six months ended August 3, 1996 was 34% as compared with 35% for the same periods last year. The lower effective tax rate in the current periods as compared with the same periods in the prior year was primarily due to lower state income taxes. Income taxes paid for the three and six months ended August 3, 1996 were $1,100,000 and $1,600,000, respectively. Income taxes paid for the three and six months ended July 29, 1995 were $2,250,000 and $2,900,000, respectively. 7. CONTINGENCIES At August 3, 1996, the Company had approximately $1,500,000 of foreign currency hedge contracts outstanding consisting of over-the-counter forward contracts. The contracts reflect the selective hedging of the Belgium Franc with varying maturities up to six months. Net unrealized losses from hedging activities were not material as of August 3, 1996. At August 3, 1996, the Company is obligated under irrevocable letters of credit totaling $2,177,000. The Company is currently involved in various litigation in the normal course of business. Management of the Company is of the opinion that the ultimate resolution of such litigation should not have a material adverse effect on the Company's consolidated financial position or results of operations. Compliance with environmental laws and regulations designed to regulate the discharge of materials into the environment or otherwise protect the environment requires continuing management effort and expenditures by the Company. The Company does not believe that the operating costs incurred in the ordinary course of business to satisfy air and other permit requirements, properly dispose of hazardous wastes and otherwise comply with these laws and regulations form or will form a material component of its operating costs or have or will have a material adverse effect on its competitive or consolidated financial positions. 9 10 FURON COMPANY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS August 3, 1996 (Unaudited) 7. CONTINGENCIES (CONTINUED) The Company or one of its subsidiaries is currently involved in environmental remediation directly or as an EPA-named potentially responsible party or private cost recovery/contribution action defendant at various sites, including the following "superfund" waste disposal sites: Solvents Recovery Service of New England site in Southington, Connecticut; Gallups Quarry site in Plainfield, Connecticut; and the Picillo Superfund site in Coventry, Rhode Island. As of August 3, 1996 the Company's reserves for environmental matters totaled approximately $1,800,000. While neither the timing nor the amount of the ultimate costs associated with the remediation matters described above can be determined with certainty, based on information currently available to the Company, including investigations to determine the nature of the potential liability, the estimated amount of investigation and remedial costs expected to be necessary to complete the remediation and other factors, the Company presently believes that these reserves should be sufficient to cover the Company's aggregate liability for these matters and, accordingly, does not expect them to have a material adverse effect on its consolidated financial position or results of operations. The actual costs to be incurred by the Company at each site will depend on a number of factors, including one or more of the following: the final delineation of contamination; the final determination of the remedial action required; negotiations with governmental agencies with respect to cleanup levels; changes in regulatory requirements; innovations in investigatory and remedial technology; effectiveness of remedial technologies employed; and the ultimate ability to pay of any other responsible parties. 10 11 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Consolidated sales for the three and six months ended August 3, 1996 rose 17% to $96 million and 12% to $191 million, respectively, over the same periods of the prior year. Effective April 1, 1996 the Company completed the acquisition of all the assets of Econocruise Ltd. based in Rugby, England. Econocruise is expected to have sales of approximately $14 million for this current fiscal year ended February 1, 1997. Econocruise manufactures state-of-the-art electronic control products such as speed control systems, electronic foot pedals and drive-by-wire systems for mobile equipment and major truck manufacturers in Europe. With this acquisition, Furon, can now offer its global customers mechanical control systems, electronic control systems, and hybrid electro-mechanical control systems. The Company has benefited from continued strength in specific industrial markets over the prior year. However, the rate of expansion slowed from the first quarter. Sales during the second quarter to the hydrocarbon processing, electronics, healthcare, beverage, paint and appliance markets increased from the same period of the prior year. Despite a general industry decline in the heavy duty truck market of 20% to 30%, consistent with industry expectations, the Company held its sales to this portion of the business constant through additional penetration. Company sales to the processing industry were up 10% over last year's second quarter despite declines in the pulp and paper, and oil exploration markets. However, both of these markets were up significantly over the first quarter of this year. The Company's sales into the semi-conductor market were up 55% in the second quarter over the same quarter last year significantly outpacing this market on the strength of new products and increased market penetration. Sales for the three and six months ended August 3, 1996 for the Company's European operations were up 22% and 17%, respectively, over the same periods of the prior year (32% and 25% after removing the effect of foreign currency exchange rate changes). Gross profit as a percentage of sales for the three and six months ended August 3, 1996 was flat and down 0.5%, respectively from the same periods of the prior year to 27.1% and 27.5%, respectively. For the current quarter, spending on direct and variable costs was favorable to the prior year. Offsetting these gains were higher fixed costs in relation to sales associated with recent acquisitions. Compared to the first quarter, the operating leverage effect of favorable domestic manufacturing costs, and continued productivity and process improvements were not enough to offset the impact of higher manufacturing costs experienced in Europe; in part due to seasonal softness in sales (somewhat magnified by Econocruise) and a shift in product mix. 11 12 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS (CONTINUED) Selling, general and administrative expenses as a percentage of sales were 21.1% for both the three and six months ended August 3, 1996, down from 22.0% and 22.6%, respectively, for the same periods a year ago. The increase in selling, general and administrative expense in terms of dollars from last year was primarily the result of higher performance based incentive compensation and increased product development expenses, reflecting the Company's continued commitment to new products and materials development (new product sales were 20% of total sales in the second quarter compared with 15% for the full year in fiscal 1996 and 10% in fiscal 1995). Partially offsetting these expenses were fewer costs incurred related to travel and professional fees. Other income and expense net, reflected increased income from the Company's investments, as well as decreased other expense, which was attributable to the elimination of higher income related to businesses previously held for sale in the same period last year. Interest expense for the three and six months ended August 3, 1996 decreased 14% from the same periods of the prior year. Although there has been an increase in the amount of debt as a result of acquisitions of the assets of Fluorglas and Econocruise, higher interest rate bearing long-term debt has been paid off, resulting in lower expense. Pretax results of operations for the three and six months ended August 3, 1996 were up 42% and 37%, respectively, compared to the same periods last year. The improvement generally reflected higher sales, continued productivity improvements and lower operating expenses, which were somewhat offset by higher material costs in Europe. For the three months ended August 3, 1996, net of acquisitions and divestitures, total sales were up 6% compared to the same period the prior year. Similarly, European sales, after removing the effect of foreign currency exchange rates, were up 1%, reflecting the general economic slowdown in European economies. Gross margins increased 0.2% to 27.6%, and operating expenses decreased 0.2% to 22.3% of sales. Pretax results of operations increased 20% for the three months ended August 3, 1996 compared to the same period last year. For the six months ended August 3, 1996, net of acquisitions and divestitures, total sales were up 3% while European sales, after removing the effect of foreign currency exchange rates, were up 4% compared to the same period of the prior year. Gross profit margin decreased 0.3% to 28.0%, and operating expenses decreased 0.9% to 22.3% of sales. Pretax results of operations increased 24% for the six months ended August 3, 1996 compared to the same period last year. 12 13 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS (CONTINUED) The Company's effective tax rate for the three and six months ended August 3, 1996 was 34% compared with 35% in the same periods last year. The lower effective tax rate in the current periods as compared with the same periods last year was primarily due to lower state income taxes. LIQUIDITY AND CAPITAL RESOURCES The Company's financial condition remained strong at August 3, 1996. The ratio of current assets to current liabilities was 2.5 to 1.0, unchanged from the beginning of the year. Net working capital increased $4.7 million from the end of the prior year to a total of $65.1 million. Cash provided by operations for the three and six months ended August 3, 1996 was $11.1 million and $15.3 million, respectively, compared with $7.0 million and $8.3 million, respectively, provided in the same periods of the prior year. Net of the Econocruise acquisition, accounts receivable decreased $2.1 million, inventories increased $3.1 million, income taxes payable increased $1.3 million and accounts payable and accrued liabilities decreased $1.7 million from the prior year end. Capital expenditures totaled $10.9 million and were primarily for renovating existing facilities, leasehold improvements, or replacement of existing equipment, in addition to implementation of the operating systems to support the Company's new structure. Cash and cash equivalents (cash, less checks outstanding) decreased $1.8 million primarily as a result of cash used in the Econocruise acquisition and to fund capital expenditures and working capital requirements. Long-term debt increased slightly as a result of funds borrowed to complete the acquisition of Econocruise. The Company's debt to equity ratio was 0.35 to 1.0 at August 3, 1996, a decrease from 0.38 to 1.0 at the beginning of the year. The Company continues to believe that it generates sufficient cash flow from its operations to finance near and long-term internal growth, capital expenditures and the principal and interest payments on its loans payable to banks. The Company will continue to evaluate its employment of capital resources including asset management and other sources of financing. Management continually reviews possible acquisitions, and should the Company make a substantial acquisition, it could require the utilization of the remaining $63 million available on its existing credit facility or financing from other sources. ENVIRONMENTAL MATTERS For information regarding environmental matters and other contingencies, see note 7 of the Notes to Condensed Consolidated Financial Statements. 13 14 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. Not applicable. ITEM 2. CHANGES IN SECURITIES. Not applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES. Not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The Annual Meeting of the Shareholders of the registrant was held on June 4, 1996. The following matters were voted upon and approved at the meeting:
VOTES CAST ------------------------------------ BROKER MATTER FOR AGAINST WITHHELD ABSTENTIONS NONVOTES - -------------------------------------- --------- ------- -------- ----------- -------- 1. Election of Class III Directors: J. Michael Hagan 8,133,720 -- 25,069 -- -- Peter Churm 8,132,752 -- 26,037 -- -- William D. Cvengros 8,131,131 -- 27,658 -- -- 2. Ratification of Appointment of Ernst & Young LLP as Independent Auditors for Fiscal Year Ending February 1, 1997 7,675,836 20,811 -- 462,142 --
ITEM 5. OTHER INFORMATION. Not applicable. 14 15 PART II - OTHER INFORMATION (CONTINUED) ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits: PAGE NUMBER ----------- 11 Statement re: Computation of Net Income Per Share 17 27 Financial Data Schedule 18 (b) Reports on Form 8-K:
There were no reports on Form 8-K for the three months ended August 3, 1996. 15 16 PART II (CONTINUED) 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. FURON COMPANY -------------------------------------------------------- REGISTRANT /S/MONTY A. HOUDESHELL /S/DAVID L. MASCARIN - --------------------------------------- ------------------------------------ Monty A. Houdeshell David L. Mascarin Vice President, Chief Financial Officer Controller and Treasurer September 10, 1996 16 EX-11 2 STATEMENT RE: COMPUTATION OF NET INCOME PER SHARE 1 EXHIBIT 11 FURON COMPANY Computation of Net Income Per Share
Three months ended Six months ended ------------------ ---------------- August 3, July 29, August 3, July 29, 1996 1995 1996 1995 - -------------------------------------------------------------------------------------------------------------- PRIMARY NET INCOME PER SHARE Earnings: Net income $3,895,000 $2,710,000 $8,453,000 $6,065,000 ========== ========== ========== ========== Shares: Weighted average number of common shares outstanding 8,886,221 8,825,941 8,870,848 8,806,857 Shares issuable from assumed exercise of stock options 271,908 273,284 246,576 258,831 ---------- ---------- ---------- ---------- Average shares as adjusted 9,158,129 9,099,225 9,117,424 9,065,688 ========== ========== ========== ========== Primary net income per share $ 0.43 $ 0.30 $ 0.93 $ 0.67 ========== ========== ========== ========== FULLY DILUTED NET INCOME PER SHARE Earnings: Net income $3,895,000 $2,710,000 $8,453,000 $6,065,000 ========== ========== ========== ========== Shares: Weighted average number of common shares outstanding 8,886,221 8,825,941 8,870,848 8,806,857 Shares issuable from assumed exercise of stock options 271,967 273,606 247,619 267,058 ---------- ---------- ---------- ---------- Average shares as adjusted for full dilution 9,158,188 9,099,547 9,118,467 9,073,915 ========== ========== ========== ========== Fully diluted net income per share $ 0.43 $ 0.30 $ 0.93 $ 0.67 ========== ========== ========== ==========
17 EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q FOR THE SIX MONTHS ENDED AUGUST 3, 1996. 1,000 U.S. DOLLARS 6-MOS FEB-01-1997 AUG-03-1996 1 0 0 54,442 1,471 45,178 107,947 158,721 74,167 223,700 42,820 0 0 0 38,401 73,207 223,700 190,979 190,979 138,436 178,781 (1,963) 287 1,354 12,807 4,354 8,453 0 0 0 8,453 0.93 0.93
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