-----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, UC9zXuBKItpsLn8VJbyZT14TzNT1uUYia32yEuigB1KgOwi+qGQRs4S4pGVpYEvY gP/fyiGbtmmWkjInG+49yQ== 0000038725-03-000098.txt : 20031014 0000038725-03-000098.hdr.sgml : 20031013 20031014114700 ACCESSION NUMBER: 0000038725-03-000098 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030909 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20031014 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN ELECTRIC CO INC CENTRAL INDEX KEY: 0000038725 STANDARD INDUSTRIAL CLASSIFICATION: MOTORS & GENERATORS [3621] IRS NUMBER: 350827455 STATE OF INCORPORATION: IN FISCAL YEAR END: 0103 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-00362 FILM NUMBER: 03938589 BUSINESS ADDRESS: STREET 1: 400 E SPRING ST CITY: BLUFFTON STATE: IN ZIP: 46714 BUSINESS PHONE: 2608242900 MAIL ADDRESS: STREET 1: 400 E SPRING STREET CITY: BLUFFTON STATE: IN ZIP: 46714 8-K 1 r_8k3qtr2003.txt 8-K 3RD QUARTER 2003 EARNINGS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) OCTOBER 9, 2003 --------------- FRANKLIN ELECTRIC CO., INC. --------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) INDIANA 0-362 35-0827455 ------- ----- ---------- (STATE OR OTHER JURISDICTION OF (COMMISSION (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) FILE NUMBER) IDENTIFICATION NO.) 400 EAST SPRING STREET BLUFFTON, INDIANA 46714 ----------------- ----- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (260) 824-2900 -------------- (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) 2 Item 7. Financial Statements, Pro Forma Financial Information and Exhibits - --------------------------------------------------------------------------- The following exhibit is furnished pursuant to Item 12: (99) Press Release, dated October 9, 2003 issued by Franklin Electric Co., Inc. Item 9. Regulation FD Disclosure - --------------------------------- The following information is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Disclosure of Results of Operations and Financial Condition." On October 9, 2003, Franklin Electric Co., Inc. issued a press release setting forth its third-quarter 2003 earnings. A copy of the press release is attached hereto as Exhibit (99) and hereby incorporated by reference. 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. FRANKLIN ELECTRIC CO., INC. --------------------------- (Registrant) Date October 13, 2003 By /s/ Gregg C. Sengstack ---------------- --------------------------------- Gregg C. Sengstack, Senior Vice President and Chief Financial Officer and Secretary (Principal Financial and Accounting Officer) 3 Exhibit Index ------------- EXHIBIT NO. (99) Press release, dated October 9, 2003 issued by Franklin Electric Co., Inc. Exhibit 99 ADDITIONAL EXHIBITS Press Release - ------------- For Immediate Release For Further Information Refer to: Gregg C. Sengstack 260-824-2900 FRANKLIN ELECTRIC COMPANY REPORTS INCREASED INCOME AND SALES FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2003 Bluffton, Indiana-October 9, 2003--Franklin Electric Co., Inc. (NASDAQ:FELE) reported record third quarter 2003 diluted earnings per share of $0.93, a 9 percent increase from $0.85 for the third quarter of 2002. Third quarter 2003 net income was a record $10.5 million, an increase of 9 percent from $9.6 million for the same period a year ago. For the first three quarters of 2003, diluted earnings per share were a record $2.12, an increase of 8 percent compared to 2003 earnings per share of $1.96, and net income was a record $23.9 million, an increase of 7 percent compared to last year's $22.3 million. Sales for the third quarter of 2003 were a record $99.7 million, an increase of 3 percent compared to sales of $97.1 million for the same period a year ago. Foreign currencies, particularly the euro, strengthened relative to the U.S. dollar since the third quarter of 2002. The impact of this change in exchange rates was a $3.7 million increase in the Company's reported third quarter 2003 sales. For the first three quarters of 2003, sales were a record $263.3 million, an increase of 2 percent compared to 2002 sales of $258.9 million. The impact of strengthening foreign currencies on the first three quarters of 2003 was an $11.3 million increase in the Company's reported sales. In addition, the year on year impact of the inclusion of the sales of Intelligent Controls, Inc. ("INCON"), acquired by the Company in July 2002, was an increase in sales of $4.1 million in the first three quarters of 2003 compared to last year. Operating earnings in the third quarter of 2003 were $15.8 million, up slightly compared to $15.6 million a year ago. For the first three quarters of 2003, operating earnings were $36.0 million compared to last year's $35.0 million. R. Scott Trumbull, Chairman and Chief Executive Officer, stated, "We are pleased that our earnings increased in spite of reduced unit sales in one of our key markets. Last year we had unusually strong sales in the North American Residential water well market as drought conditions prevailed over much of the East coast. This year our residential water sales have fallen back to normal levels. We were pleased with the growth of our motor sales to the agricultural, industrial and municipal markets during the quarter; and we 4 were also encouraged by the continuing improvement of our fueling systems business.During the quarter we completed the construction and moved into our new motor components facilities in the Czech Republic and China; and we initiated the construction phase of the planned expansion of our motor plant in Linares Mexico. Also during the quarter our Board approved the construction of a new motor plant in the Czech Republic. These initiatives - which will require approximately 2 years to complete - will result in moving a significant amount of our production to lower cost regions of the world. North America water systems products sales were down slightly in the third quarter as compared to last year. The decrease during the quarter reflected continued weak demand in the market attributed to extremely wet weather conditions throughout the Eastern half of the country partially offset by strong export sales. Water System sales in Europa (Europe, the Middle East and North Africa) were up due primarily to sales in the Middle East. South Africa showed higher quarter over quarter sales. Sales in the Asia/Pacific region were higher as well. Sales of the SubDrive(tm) family of electronic drive systems for water wells continued to grow quarter over quarter. Another SubDrive(tm) product will be launched in the fourth quarter further extending the product line. Fueling system product sales continued to strengthen in the quarter and margins were up significantly as compared to the first half of the year and the third quarter last year. The integration of INCON remained on schedule. Third quarter industrial motor products sales were down primarily due to the slowness of the market. During the quarter, the Company started sales of its new V Series(tm) product line manufactured in China. The Company's HydroDuty(tm)(patents pending) product line was made commercially available at the end of the quarter as well." Franklin Electric, a technical leader in electric motors, drives and controls, is the world's largest manufacturer of submersible water and fueling systems motors, a manufacturer of underground fueling systems hardware and flexible piping systems and a leader in engineered industrial motor products. ######## "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Any forward looking statements contained herein involve risks and uncertainties, including but not limited to, general economic and currency conditions, various conditions specific to the Company's business and industry, market demand, competitive factors, supply constraints, technology factors, government and regulatory actions, the Company's accounting policies, future trends, and other risks which are detailed in the Company's Securities and Exchange Commission filings. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. 5 FRANKLIN ELECTRIC CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) Third Qtr. Ended Nine Months Ended ---------------- ----------------- Sept 27, Sept 28, Sept 27, Sept 28, 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $99,685 $97,125 $263,303 $258,876 Cost of sales 68,917 67,572 183,780 184,872 ------- ------- -------- -------- Gross Profit 30,768 29,553 79,523 74,004 Selling and administrative expenses 14,933 13,957 43,567 39,046 ------- ------- -------- -------- Operating income 15,835 15,596 35,956 34,958 Interest expense (313) (367) (975) (1,026) Other income 14 61 248 268 Foreign exchange gain /(loss) (278) (327) 404 777 ------- ------- -------- -------- Income before income taxes 15,258 14,963 35,633 34,977 Income taxes 4,745 5,335 11,724 12,661 ------- ------- -------- -------- Net income $10,513 $ 9,628 $ 23,909 $ 22,316 ======= ======= ======== ======== Net income per share: Basic $ 0.97 $ 0.89 $ 2.22 $ 2.07 ======= ======= ======== ======== Diluted $ 0.93 $ 0.85 $ 2.12 $ 1.96 ======= ======= ======== ======== Weighted average shares and equivalent shares outstanding: Basic 10,813 10,824 10,783 10,781 ======= ======= ======== ======== Diluted 11,357 11,326 11,286 11,388 ======= ======= ======== ======== 6 FRANKLIN ELECTRIC CO., INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) Sept. 27, Dec. 28, 2003 2002 ---- ---- ASSETS: Cash and equivalents $ 18,064 $ 20,133 Receivables 34,302 31,711 Inventories 53,233 48,268 Other current assets 13,262 12,897 -------- -------- Total current assets 118,861 113,009 ======== ======== Property, plant and equipment, net 77,740 76,033 Goodwill and other assets 69,975 69,541 -------- -------- Total Assets $266,576 $258,583 ======== ======== LIABILITIES AND SHAREOWNERS' EQUITY: Current maturities of long-term debt and short-term borrowing $ 1,477 $ 1,467 Accounts payable and accrued liabilities 50,689 48,780 -------- -------- Total current liabilities 52,166 50,247 Long-term debt 15,923 25,946 Employee benefit plan obligations 20,868 23,988 Other long-term liabilities 5,386 5,264 Shareowners' equity 172,233 153,138 -------- -------- Total liabilities and shareowners' equity $266,576 $258,583 ======== ======== 7 FRANKLIN ELECTRIC CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Nine Months Ended ----------------- Sept 27, Sept 28, 2003 2002 ---- ---- Cash flows from operating activities: Net income $23,909 $22,316 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 10,329 9,848 Loss on disposals of plant and equipment 436 2 Changes in assets and liabilities: Receivables (1,083) 1 Inventories (2,882) 3,504 Accounts payable and other accrued expenses 1,992 1,096 Employee benefit plan obligations (3,245) 885 Other, net (915) (1,965) ------- ------- Net cash flows from operating activities 28,541 35,687 ------- ------- Cash flows from investing activities: Additions to plant and equipment (8,925) (9,016) Proceeds from sale of plant and equipment 243 19 Additions to deferred assets (433) (14,232) Cash paid for acquisitions, net of cash acquired - (30,344) Proceeds from maturities of marketable securities - 2,999 ------- ------- Net cash flows from investing activities (9,115) (50,574) ------- ------- Cash flows from financing activities: Borrowing on long-term debt 6,648 8,350 Repayment of long-term debt (18,407) (208) Borrowing on line of credit and short-term borrowings 11,000 3,000 Repayment of line of credit and short-term borrowings (11,024) (3,013) Proceeds from issuance of common stock 3,282 1,731 Purchases of common stock (9,782) (2,253) Reduction of loan to ESOP Trust 233 232 Dividends paid (4,420) (4,098) ------- ------- Net cash flows from financing activities (22,470) 3,741 ------- ------- Effect of exchange rate changes on cash 975 935 ------- ------- Net change in cash and equivalents (2,069) (10,211) Cash and equivalents at beginning of period 20,133 20,750 ------- ------- Cash and equivalents at end of period $18,064 $10,539 ======= ======= -----END PRIVACY-ENHANCED MESSAGE-----