-----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, IxlYCnaCkcXdRn2FiRhAzELwa/TPfVLDgeeZa1LcTjB4MgT3/LZwS1Higcipm2A6 pK7WoPxRPJjgsMOK3BovMA== 0000003941-98-000007.txt : 19980528 0000003941-98-000007.hdr.sgml : 19980528 ACCESSION NUMBER: 0000003941-98-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980513 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIED PRODUCTS CORP /DE/ CENTRAL INDEX KEY: 0000003941 STANDARD INDUSTRIAL CLASSIFICATION: 3523 IRS NUMBER: 380292230 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-05530 FILM NUMBER: 98617950 BUSINESS ADDRESS: STREET 1: 10 S RIVERSIDE PLZ STREET 2: SUITE 400 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124541020 10-Q 1 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 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 number 1-5530 ALLIED PRODUCTS CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 38-029223 ------------------------------- ------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 10 SOUTH RIVERSIDE PLAZA, CHICAGO, ILLINOIS 60606 - - -------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (312) 454-1020 Not Applicable ---------------------------------------------- (former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by section 13 or 15(d) of 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 requirement 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: 11,917,355 common shares, $.01 par value, as of April 30, 1998. ALLIED PRODUCTS CORPORATION AND CONSOLIDATED SUBSIDIARIES INDEX PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS INTRODUCTION CONDENSED CONSOLIDATED BALANCE SHEETS- March 31, 1998 and December 31, 1997 CONDENSED CONSOLIDATED STATEMENTS OF INCOME- Three Months Ended March 31, 1998 and 1997 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS- Three Months Ended March 31, 1998 and 1997 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS PART II. OTHER INFORMATION ITEM 1. NOT APPLICABLE ITEM 2. NOT APPLICABLE ITEM 3. NOT APPLICABLE ITEM 4. NOT APPLICABLE ITEM 5. NOT APPLICABLE ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K SIGNATURES EXHIBIT INDEX PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS ALLIED PRODUCTS CORPORATION AND CONSOLIDATED SUBSIDIARIES INTRODUCTION The condensed consolidated financial statements included herein (as of March 31, 1998 and for the three months ended March 31, 1998 and 1997) have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments which are, in the opinion of management, necessary to present fairly the condensed consolidated financial information required therein. All such adjustments are of a normal, recurring nature. The information as of December 31, 1997 is derived from the audited year end balance sheet for that year. 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 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. The results of operations for the three month periods ended March 31, 1998 and 1997 are not necessarily indicative of the results to be expected for the full year. ALLIED PRODUCTS CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, -------------------------------- 1998 1997 ------------- ------------- Net sales $ 62,831,000 $ 72,881,000 Cost of products sold 43,974,000 55,226,000 ------------ ------------ Gross profit $ 18,857,000 $ 17,655,000 ------------ ------------ Other costs and expenses: Selling and administrative expenses $ 8,671,000 $ 8,493,000 Interest expense 1,090,000 694,000 Other (income) expense, net (128,000) 429,000 ------------ ------------ $ 9,633,000 $ 9,616,000 ------------ ------------ Income before taxes $ 9,224,000 $ 8,039,000 Provision for income taxes 3,359,000 2,868,000 ------------ ------------ Net income $ 5,865,000 $ 5,171,000 ============ ============ Earnings per common share: Basic $ 0.49 $ 0.42 ============ ============ Diluted $ 0.48 $ 0.41 ============ ============ Weighted average shares outstanding: Basic 11,925,000 12,283,000 ============ ============ Diluted 12,112,000 12,514,000 ============ ============ Dividends per common share $ 0.04 $ 0.0333 ============ ============ The accompanying notes to condensed consolidated financial statements are an integral part of the statements.
ALLIED PRODUCTS CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS
March 31,1998 December 31, 1997 --------------- ----------------- Current Assets: Cash and cash equivalents $ 1,273,000 $ 609,000 --------------- ----------------- Notes and accounts receivable, less allowances of $566,000 and $531,000, respectively $ 74,531,000 $ 54,729,000 --------------- ----------------- Inventories: Raw materials $ 6,654,000 $ 6,193,000 Work in process 81,620,000 58,090,000 Finished goods 15,185,000 14,419,000 --------------- ----------------- $ 103,459,000 $ 78,702,000 ---------------- ----------------- Deferred tax asset $ 12,773,000 $ 12,773,000 --------------- ----------------- Prepaid expenses $ 457,000 $ 415,000 --------------- ----------------- Total current assets $ 192,493,000 $ 147,228,000 --------------- ----------------- Plant and Equipment, at cost: Land $ 2,243,000 $ 2,243,000 Building and improvements 45,748,000 40,750,000 Machinery and equipment 53,407,000 51,339,000 --------------- ----------------- $ 101,398,000 $ 94,332,000 Less-Accumulated depreciation and amortization 50,150,000 48,811,000 --------------- ----------------- $ 51,248,000 $ 45,521,000 --------------- ----------------- Other Assets: Deferred tax asset $ 4,071,000 $ 4,071,000 Deferred charges (goodwill), net of amortization 1,447,000 1,491,000 Other 1,931,000 1,472,000 --------------- ----------------- $ 7,449,000 $ 7,034,000 --------------- ----------------- $ 251,190,000 $ 199,783,000 =============== ================= The accompanying notes to consolidated financial statements are an integral part of these statements.
ALLIED PRODUCTS CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' INVESTMENT
March 31,1998 December 31, 1997 --------------- ------------------ Current Liabilities: Revolving credit agreement $ 79,600,000 $ 50,400,000 Current portion of long-term debt 268,000 268,000 Accounts payable 35,962,000 19,923,000 Accrued expenses 23,997,000 25,145,000 --------------- ------------------ Total current liabilities $ 139,827,000 $ 95,736,000 --------------- ------------------ Long-term debt, less current portion shown above $ 602,000 $ 670,000 --------------- ------------------ Other long-term liabilities $ 12,696,000 $ 10,353,000 --------------- ------------------ Commitments and Contingencies Shareholders' Investment: Preferred stock: Undesignated-authorized 1,500,000 shares at March 31, 1998 and December 31, 1997; none issued $ - $ - Common Stock, par value $.01 per share; authorized 25,000,000 shares; issued 14,047,249 shares at March 31, 1998 and December 31, 1997 140,000 140,000 Additional paid-in capital 94,379,000 94,709,000 Retained earnings 45,817,000 40,428,000 --------------- ------------------ $ 140,336,000 $ 135,277,000 Less: Treasury stock, at cost: 2,130,269 and 2,144,263 shares at March 31, 1998 and December 31, 1997, respectively (42,271,000) (42,253,000) --------------- ------------------ Total shareholder's equity $ 98,065,000 $ 93,024,000 --------------- ------------------ $ 251,190,000 $ 199,783,000 =============== ================== The accompanying notes to consolidated financial statements are an integral part of these statements.
ALLIED PRODUCTS CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, ------------------------------------------ 1998 1997 -------------- --------------- Cash Flows from Operating Activities: Net income $ 5,865,000 $ 5,171,000 Adjustments to reconcile net income to net cash used for operating activities: Gains on sales of operating and nonoperating assets (15,000) (124,000) Depreciation and amortization 1,350,000 1,244,000 Amortization of deferred charges 44,000 44,000 Deferred income tax provision 2,888,000 2,528,000 Changes in noncash assets and liabilities, net of noncash transactions: (Increase) in accounts receivable (19,851,000) (26,922,000) (Increase) decrease in inventories (24,757,000) 1,621,000 (Increase) decrease in prepaid expenses (42,000) 21,000 Increase in accounts payable and accrued expenses 14,415,000 3,120,000 Other,net (551,000) (62,000) -------------- --------------- Net cash used for operating activities $(20,654,000) $ (13,359,000) -------------- --------------- Cash Flows from Investing Activities: Additions to plant and equipment $ (7,077,000) $ (2,873,000) Proceeds from sales of plant and equipment 15,000 385,000 -------------- --------------- Net cash used for investing activities $ (7,062,000) $ (2,488,000) -------------- --------------- Cash Flows from Financing Activities: Borrowings under revolving credit agreement $ 38,000,000 $ 38,600,000 Payments under revolving credit agreement (8,800,000) (10,300,000) Payments of short and long-term debt (68,000) (48,000) Purchase of treasury stock (776,000) (12,956,000) Dividends paid - 3,000 Stock option transactions 24,000 856,000 -------------- --------------- Net cash provided from financing activities $ 28,380,000 $ 16,155,000 -------------- --------------- Net increase in cash and cash equivalents $ 664,000 $ 308,000 Cash and cash equivalents at beginning of year 609,000 833,000 -------------- --------------- Cash and cash equivalents at end of year $ 1,273,000 $ 1,141,000 ============== =============== The accompanying notes to condensed consolidated financial statements are an integral part of the statements.
Allied Products Corporation and Consolidated Subsidiaries Notes to Condensed Consolidated Financial Statements (1) Accrued Expenses The Company's accrued expenses consist of the following:
3/31/98 12/31/97 ----------- ----------- Salaries and wages $ 7,345,000 $ 5,560,000 Warranty 4,987,000 4,938,000 Self insurance accruals 1,310,000 2,858,000 Pensions, including retiree health 4,719,000 6,439,000 Taxes, other than income taxes 1,083,000 1,158,000 Environmental matters 1,777,000 1,810,000 Other 2,776,000 2,382,000 ----------- ----------- $23,997,000 $25,145,000 =========== ===========
(2) Earnings Per Common Share During 1997, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 128 (SFAS 128)--Earnings per Share. Earnings per common share and weighted average shares outstanding for the three months ended March 31, 1997 have been restated to reflect the effect of a three-for-two stock split in 1997 and the effect of adopting the provisions of this accounting standard. Basic earnings per common share is based on the average number of common shares outstanding-11,925,000 and 12,283,000 for the three months ended March 31, 1998 and 1997, respectively. Diluted earnings per common share is based on the average number of common shares outstanding, as noted above, increased by the dilutive effect of outstanding stock options -187,000 and 231,000 for the three months ended March 31, 1998 and 1997, respectively. (3) Contingent Liabilities The Company is involved in a number of legal proceedings as a defending party, including product liability and environmental matters for which additional liability is reasonably possible. However, after consideration of relevant data (consultation with legal counsel and review of insurance coverage, accruals, etc.), management believes that the eventual outcome of these matters will not have a material adverse effect on the Company's financial position or its ongoing results of operations. Reference is made to Note 10 of Notes to Consolidated Financial Statements in the Company's 1997 Annual Report on Form 10-K as it relates to a note receivable taken in connection with the sale of the business and assets of the former Littell division. Collections from this note in the first quarter of 1998 totaled $195,000 and were included in "Other (income) expense." Reference is made to Note 10 of Notes to Consolidated Financial Statements in the Company's 1997 Annual Report on Form 10-K as it relates to the sale by the Company of a site in Coldwater, Ohio that was contingent on the issuance by the State of Ohio, Ohio Environmental Protection Agency, of a covenant not to sue. On March 31, 1998, The Ohio Environmental Protection Agency issued the covenant not to sue and the Company expects to close on the sale of this facility for cash in mid May 1998 At March 31, 1998, the Company was contingently liable for approximately $1,034,000 primarily relating to outstanding letters of credit. (4) Income Taxes The provision for income taxes in the first quarter of 1998 and 1997 is based upon the Federal statutory rates adjusted for items that are not subject to taxes. See Note 4 of Notes to Consolidated Financial Statements in the Company's 1997 Annual Report on Form 10-K for a further discussion related to income taxes. (5) Summary of Other (Income) Expense Other (income) expense for the three month periods ended March 31, 1998 and 1997 consists of the following:
For the three months ended -------------------------- 3/31/98 3/31/97 --------- ---------- Interest income $ (46,000) $ (17,000) Goodwill amortization 44,000 44,000 Net (gain) on sales of operating and non-operating assets (15,000) (124,000) Litigation settlements/insurance provisions - 442,000 Credit for recovery of long-term note receivable (195,000) - Other miscellaneous 84,000 84,000 ---------- --------- $(128,000) $ 429,000 ========== =========
(6) Subsequent Event On March 30, 1998, the Company announced that it had reached a definitive agreement to purchase substantially all of the assets and assume certain liabilities of Great Bend Manufacturing Company located in Great Bend, Kansas. Great Bend manufactures and sells tractor- mounted front-end loaders, which are used principally in agricultural applications. Subsequent to the end of the first quarter of 1998, the Company completed the purchase of this operation from Owosso Corporation. The purchase price was approximately $10,000,000 cash. On April 23, 1998, the Company announced that it had acquired for cash the assets of Universal Turf Equipment Corporation, located in Opp, Alabama. Universal manufactures and sells turf maintenance implements including reel mowers, verti-cut mowers, reel grinders and spraying equipment. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OPERATING RESULTS Net sales for the first quarter of 1998 were $62,831,000 compared to net sales of $72,881,000 reported in the first quarter of 1997. The majority of the decrease was related to the sale of the Company's Coz division in the fourth quarter of 1997. Income before taxes was $9,224,000 in the first quarter of 1998 compared to income before taxes of $8,039,000 reported in the same quarter of the prior year. Net income was $5,865,000 ($.49 per common share-basic) in the first quarter of 1998 compared to net income of $5,171,000 ($.42 per common share-basic) in the first quarter of 1997. "Earnings per common share" and "Weighted average shares outstanding" have been restated for the three months ended March 31, 1997 to reflect the effect of a three-for-two stock split in 1997 and the effect of adopting Statement of Financial Accounting Standard No. 128 - Earnings per Share. At the Bush Hog division, net sales increased 8% in the first quarter of 1998 compared to the same quarter of the prior year. The majority of the increase was associated with the cutter and loader product lines. Cutter sales are benefitting from the upturn in cow/calf prices since the spring of 1997. Cattle ranchers use the cutters for grazing pasture maintenance. Cutter sales in 1998 were also favorably affected by new/redesigned products for the turf and landscaping market for utilization by commercial turf (sod) growers and for golf course maintenance. Loader sales benefitted from the introduction of a new line of front-end loaders offering updated mechanical and structural designs. Retail sales of Bush Hog products have also been strong in 1998. During the first quarter of 1998, gross profits and gross profit margins have improved compared to the same quarter of the prior year. These improvements were associated with increased labor efficiency resulting from improved production techniques and the addition of new equipment. Facility utilization also increased in the first quarter of 1998. Net sales at the Verson division decreased by over 14% in the first quarter of 1998 compared to the same quarter of the prior year. Revenue and profits are recognized on a percentage of completion basis for press production at this division. The decrease in net sales relates to the mix of production in each of the related quarters. In the first quarter of 1997, production was completed on the third "A" press for Chrysler. Current year production did not include any "A" size press manufacturing. In addition, delivery date extensions have also resulted in lower press revenue in the first quarter of 1998. The division was also affected by the impact of a late winter snow storm resulting in disruption of production for a few days. Gross profits and gross profit margins have improved in the first quarter of the current year. Favorably affecting margins was the settlement of a claim against a third party, which negatively impacted periods prior to 1997. The impact of this settlement was partially offset by the effects of lower margins on jobs in process. Generally speaking, smaller presses carry lower margins than the larger presses which were being produced in the first quarter of 1997. The division also experienced a substantial increase in costs associated with significant new operational changes which were required because of the large increase in new orders and the related plant expansion. Selling and administrative expenses increased in the first quarter of 1998 to $8,671,000 (13.8% of net sales) from $8,493,000 (11.7% of net sales) in the same quarter of the prior year. At the Bush Hog division, increases in selling expenses were principally associated with the effects of the increase in sales volume as discussed above. Selling expense increases at the Verson division were related to the establishment of an international marketing department in the last half of 1997. Administrative expense increases at the Verson division were the result of staff expansion, including the impact of the new Precision Press Industry division which started operations in the last quarter of 1997. Legal fees associated with the settlement of a claim at the Verson division (as noted above) also resulted in administrative cost increases. Corporate administrative costs decreased in 1998 due to staff retirements in the last half of the prior year. Interest expense in the first quarter of 1998 was $1,090,000 compared to interest expense of $694,000 in the first quarter of 1997. Increased borrowing needs were related to increased inventory and receivable levels at the Bush Hog and Verson divisions. Increased borrowing needs were primarily due to fixed asset additions over the last twelve months as well as the impact of decreased customer deposits and progress payments against press orders at the Verson division. Reference is made to Note 5 of Notes to Consolidated Condensed Financial Statements for an analysis of Other (income) expense in the first quarter of 1998 and 1997. It should be noted that "Litigation settlements/insurance provisions" in the first quarter of 1997 included income of $1,550,000 from the settlement of an environmental claim against the former owner of an idle facility, and additional expenses of approximately $1,950,000 related primarily to product liability claims of certain former divisions of the Company. FINANCIAL CONDITION AND LIQUIDITY Working capital at March 31, 1998 was $52,666,000 (current ratio of 1.38 to 1.0) compared to working capital of $51,492,000 (current ratio of 1.54 to 1.0) at December 31, 1997. Net receivables increased by $19,802,000 since the end of 1997. The vast majority of this increase was associated with the Bush Hog division where cash collections are dependent upon the retail sale of the product by the dealer. Sales to dealers are typically strong in the first quarter of the year or just prior to the use season by the farmer. Extended payment terms are offered to dealers in the form of floor plan financing which is customary in the industry. On a consolidated basis, inventory levels have increased by $24,757,000 since the end of 1997. The majority of the increase was related to the Verson division. This increase was the direct result of the number and the extent of jobs in process as well as the effects of delivery date extensions. Inventory levels at the Bush Hog division have also increased since the end of 1997 as a result of increased production associated with product demand increases. Fixed asset additions in the first quarter of 1998 totaled $7,077,000. The majority of these additions were represented by construction costs associated with a $28,000,000 expansion project at the Verson division. This project will more than double the size of Verson's assembly facility and will increase the division's capacity by approximately 35%. Expenditures for production machinery and equipment at both the Bush Hog and Verson divisions were also made in the first quarter of the year. It is anticipated that this equipment will result in reduced manufacturing costs and improvements in product quality. Net borrowings under the Company's Amended and Restated Credit Agreement increased by $29,200,000 since the end of 1997. These borrowings, along with internally generated cash, were used to finance working capital needs and fixed asset additions noted above. As of March 31, 1998, the Company had cash balances of $1,273,000 and additional funds of $43,463,000 available under its Amended and Restated Credit Agreement. Significant capital will be required to complete the expansion project at the Verson division as noted above. In addition, funds will be required for the purchase of the Great Bend Manufacturing Company during the second quarter of 1998 - see Subsequent Event below. The Company believes that the projected positive cash flow from the collection of Bush Hog and Verson receivables in the coming months ahead and funds available under the Amended and Restated Credit Agreement are adequate to finance its operations and capital expenditures in the near future. During the first quarter of 1998, the Company has been in compliance with all provisions of loan agreements in effect. IMPACT FROM NOT YET EFFECTIVE RULES In June 1997, the FASB issued SFAS No. 131 - Disclosures about Segments of an Enterprise and Related Information. This statement establishes standards for the way that public business enterprises report information about operating segments in interim financial reports issued to shareholders subsequent to initial annual financial statement disclosure. It also establishes standards for related disclosures about products and services, geographic areas and major customers. This statement is effective for financial statements for periods beginning after December 15, 1997. Comparative information for earlier years is also to be presented. In February 1998, the FASB issued SFAS No. 132--Employers' Disclosures about Pensions and Other Postretirement Benefits. This Statement revises employers' disclosures about pension and other postretirement benefit plans. It does not change the measurement or recognition of these plans. It standardizes the disclosure requirements for pension and other postretirement benefits to the extent practicable, requires additional information on changes in the benefit obligations and fair values of plan assets that will facilitate financial analysis, and eliminates certain disclosures that are no longer as useful as they were when other related SFAS were issued. The Company is in the process of evaluating the impact of these statements on its financial reporting. SUBSEQUENT EVENT On March 30, 1998, the Company announced that it had reached a definitive agreement to purchase substantially all of the assets and assume certain liabilities of Great Bend Manufacturing Company located in Great Bend, Kansas. Great Bend manufactures and sells tractor-mounted front-end loaders, which are used principally in agricultural applications. Subsequent to the end of the first quarter of 1998, the Company completed the purchases of this operation from Owosso Corporation. The purchase price was approximately $10,000,000 cash. On April 23, 1998, the Company announced that it had acquired for cash the assets of Universal Turf Equipment Corporation, located in Opp, Alabama. Universal manufactures and sells turf maintenance implements including reel mowers, verti-cut mowers, reel grinders and spraying equipment. SAFE HARBOR STATEMENT Statements contained within the Management Discussion and Analysis of Financial Condition and Results of Operations that relate to future operating periods are subject to risks and uncertainties that could cause actual results to differ from management's projections. Operations of the Company include the manufacturing and sale of agricultural and industrial machinery. In relation to the Bush Hog division, forward-looking statements involve certain factors that are subject to change. These elements encompass interrelated factors that affect farmers and cattle ranchers' confidence, including demand for agricultural products, grain stock levels, commodity prices, weather conditions, crop and animal diseases, crop yields, farm land values and government farm programs. Other factors affecting all operations of the Company include actions of competitors in the industries served by the Company, production difficulties including capacity and supply constraints, labor relations, interest rates and other risks and uncertainties. The Company's outlook is based upon assumptions relating to the factors discussed above. PART II - OTHER INFORMATION Item 6. Exhibit and Reports on Form 8-K (a) Exhibits - See Exhibit Index included herein. (b) Reports on Form 8-K - there were no reports on Form 8-K for the three months ended March 31, 1998. 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. ALLIED PRODUCTS CORPORATION --------------------------- (REGISTRANT) May 13,1998 /s/ Robert J. Fleck - - ----------- ------------------- Robert J. Fleck Vice President- Accounting and Chief Accounting & Administrative Officer May 13, 1998 /s/ Mark C. Standefer - - ------------ --------------------- Mark C. Standefer Vice President, General Counsel & Secretary ALLIED PRODUCTS CORPORATION INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION OF EXHIBITS ----------------------- 27 Financial Data Schedules EX-27 2 FDS --
5 THIS STATEMENT CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AT MARCH 31, 1998 AND THE CONSOLIDATED STATEMENT OF INCOME AND THE CONSOLIDATED STATEMENT OF CASH FLOW FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIALS. 0000003941 ALLIED PRODUCTS CORPORATION 1,000 U.S.DOLLARS 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 1.000 1,273 0 75,097 566 103,459 192,493 101,398 50,150 251,190 139,827 602 0 0 140 97,925 251,190 62,831 62,831 43,974 43,974 9,633 49 1,090 9,224 3,359 5,865 0 0 0 5,865 .49 .48
EX-27 3 FDS --
5 RESTATED FINANCIAL DATA SCHEDULE -------------------------------- THIS STATEMENT CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AT MARCH 31, 1997 AND THE CONSOLIDATED STATEMENT OF INCOME AND THE CONSOLIDATED STATEMENT OF CASH FLOW FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000003941 ALLIED PRODUCTS CORPORATION 1,000 U.S.DOLLARS 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 1,000 1,141 0 80,454 637 55,169 150,829 90,703 50,949 198,799 106,137 441 0 0 94 86,176 198,799 72,881 72,881 55,226 55,226 9,616 19 694 8,039 2,868 5,171 0 0 0 5,171 .42 .41
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