-----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, OPcj8e4OYJiwibugFnOs/tFLZ+2lwqTYHoAMhTnHIgkDEBbJVDpjUX+C9Qq1ZLnf 6yEIsR4DeeQJArxgcfE1MQ== 0000039917-95-000007.txt : 19950515 0000039917-95-000007.hdr.sgml : 19950515 ACCESSION NUMBER: 0000039917-95-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950214 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: GARAN INC CENTRAL INDEX KEY: 0000039917 STANDARD INDUSTRIAL CLASSIFICATION: APPAREL & OTHER FINISHED PRODS OF FABRICS & SIMILAR MATERIAL [2300] IRS NUMBER: 135665557 STATE OF INCORPORATION: VA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04506 FILM NUMBER: 95509872 BUSINESS ADDRESS: STREET 1: 350 FIFTH AVE CITY: NEW YORK STATE: NY ZIP: 10118 BUSINESS PHONE: 2125632000 MAIL ADDRESS: STREET 1: 350 FIFTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10118 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended December 31, 1994 Commission File No 1-4506 GARAN, INCORPORATED (Exact name of registrant as specified in its charter) VIRGINIA 13-5665557 (State of Incorporation) (I.R.S. Employer Identification No.) 350 Fifth Avenue, New York, NY 10118 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 563-2000 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 than 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 close of the period covered by this report. Class Outstanding December 31, 1994 Common Stock (no par value) 5,069,892 shares PART I. - FINANCIAL INFORMATION GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
THREE MONTHS ENDED 12/31/94 12/31/93 __________________ __________________ Net sales $ 38,668,000 $ 45,335,000 Cost of sales 31,264,000 33,802,000 ____________ ____________ Gross margin on sales 7,404,000 11,533,000 Selling and administrative expenses 6,050,000 6,730,000 Interest on capitalized leases 39,000 41,000 Interest income (525,000) (370,000) _____________ _____________ Earnings before provision for income taxes 1,840,000 5,132,000 Provision for income taxes 718,000 2,001,000 ____________ ____________ Net earnings $ 1,122,000 $ 3,131,000 Earnings per share data: Earnings per share $ 0.22 $ 0.62 Average common shares outstanding 5,070,000 5,070,000 Dividends paid per share $ 0.40 $ 1.20
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
12/31/94 12/31/93 _____________ _____________ ASSETS Current Assets: Cash and cash equivalents $ 11,097,000 $ 7,664,000 U.S. Government securities - short-term 23,101,000 20,559,000 Accounts receivable, less estimated uncollectibles of $514,000 at 12/31/94 and $507,000 at 9/30/94 20,450,000 39,707,000 Inventories 21,238,000 27,881,000 Other current assets 2,657,000 3,085,000 _____________ _____________ Total current assets 78,543,000 98,896,000 U.S. Government Securities - long-term 13,027,000 0 Property, plant and equipment, less accumulated depreciation and amortization 15,262,000 15,544,000 Other assets 2,510,000 2,607,000 _____________ _____________ TOTAL $ 109,342,000 $ 117,047,000
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 3,014,000 $ 6,546,000 Accrued liabilities 6,592,000 9,531,000 Federal and state income taxes payable 752,000 813,000 Current portion of capitalized leases 151,000 151,000 _____________ _____________ Total current liabilities 10,509,000 17,041,000 Capitalized lease obligations, net of current portion 3,163,000 3,620,000 Deferred income taxes 2,680,000 2,490,000 Shareholders' Equity: Preferred stock ($10 par value) 500,000 shares authorized; none issued Common stock (no par value) 15,000,000 shares authorized; 5,069,892 issued at 12/31/94 and 9/30/94 2,535,000 2,535,000 Additional paid-in-capital 5,821,000 5,821,000 Retained earnings 84,634,000 85,540,000 _____________ _____________ Total shareholders' equity 92,990,000 93,896,000 _____________ _____________ TOTAL $ 109,342,000 $ 117,047,000
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED 12/31/94 12/31/93 _____________ _____________ Cash Flows From operating Activities: Net earnings $ 1,122,000 $ 3,131,000 Non cash items included in earnings: Depreciation and amortization 893,000 879,000 Provision for losses on accounts receivable 37,000 36,000 Deferred income taxes 190,000 0 Changes in assets and liabilities: U.S. Government Securities - short-term (14,557,000) 0 Accounts receivable 19,220,000 13,983,000 Inventories 6,643,000 2,742,000 Other current assets 428,000 (340,000) Accounts payable (3,532,000) (2,207,000) Accrued liabilities (2,825,000) (3,687,000) Income taxes payable (61,000) 760,000 Other assets 97,000 138,000 ______________ ______________ Net Cash Flows From operating Activities $ 7,655,000 $ 15,435,000 Cash Flows From Investing Activities: Sale of U.S. Gov't securities - long-term $ 0 $ 5,550,000 Purchase of U.S. Gov't sec. - long-term (1,012,000) (13,753,000) Additions to property plant and equipment (772,000) (730,000) Proceeds from sales of property, plant and equipment 47,000 16,000 ______________ ______________ Net Cash Flows From Investing Activities $ (1,737,000) $ (8,917,000) Cash Flows From Financing Activities: Payment of dividends $ (2,028,000) $ (6,084,000) Repayment of capitalized lease obligations (457,000) (255,000) ______________ ______________ Net Cash Flows From Financing Activities $(2,485,000) $ (6,339,000) Increase in Cash and Cash Equivalents $ 3,433,000 $ 179,000 Cash and Cash Equivalents At Beginning of Period 7,664,000 3,802,000 ______________ ______________ Cash and cash equivalents At End of Period $ 11,097,000 $ 3,981,000 Supplemental Disclosures Cash Paid During The Period For: Interest $ 39,000 $ 41,000 Income taxes 169,000 1,241,000
GARAN, INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1994 (UNAUDITED) 1. In the opinion of management, all adjustments necessary to a fair statement of the results of operations have been reflected. 2. Earnings per share are calculated on the basis of the weighted average number of common shares outstanding during the period. 3. Inventories consist of the following:
12/31/94 09/30/94 ____________ ____________ Raw Materials $ 5,019,000 $ 7,135,000 Work in process 9,495,000 10,735,000 Finished Goods 6,724,000 10,011,000 ____________ ____________ $ 21,238,000 $ 27,881,000
4. Effective December 31, 1994, the registrant adopted Statement of Financial Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities" (SFAS 115), which requires that investments in debt securities and marketable securities be designated as trading, held-to- maturity, or available-for-sale. Trading securities are reported at fair value, with changes in fair value reported in earnings. Investment securities include both available-for-sale and held-to-maturity securities. Available-for-sale securities are reported at fair value with net unrealized gains and losses (when material) included in equity. Held-to- maturity debt securities are reported at amortized cost. In accordance with SFAS 115, prior years' financial statements have not been restated to reflect the change in accounting method. There was no cumulative effect as a result of adopting SFAS 115. ITEM 2. GARAN, INCORPORATED AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION At December 31, 1994, working capital was $68,034,000, a decrease of $13,821,000 from September 30, 1994, working capital of $81,855,000. As noted in footnote 4, effective for the 1995 fiscal year the registrant adopted Statement of Financial Accounting Standards No. 115. SFAS 115 requires that investments held to maturity be classified as long term. As such, $13,027,000 of investments have been classified as long term and transferred from working capital. In accordance with SFAS 115, prior years financial statements have not been restated to reflect the change in accounting method. Shareholders' equity at December 31, 1994, was $92,990,000 or $18.34 book value per share, as compared to $93,896,000 or $18.52 book value per share at September 30, 1994. The book value per share decrease resulted primarily from the payment of the 1994 fiscal year ended special dividend and the regular quarterly dividend, both paid in November 1994. RESULTS OF OPERATIONS Three Month Periods Ended December 31, 1994 and December 31, 1993 Net sales for the first fiscal quarter of 1995 were $38,668,000, compared to last year's sales of $45,335,000. Net earnings for the first fiscal quarter were $1,122,000, equal to $0.22 per share, compared to $3,131,000, or $0.62 per share, last year. Gross margin for the three months ended December 31, 1994, was $7,404,000, or 19.2% of net sales, compared to $11,533,000, or 25.4% of net sales, for the comparable period last year. The decreases in net sales and gross margin for the three month period reflected reduced unit sales and lower average unit selling prices resulting from prevailing competitive conditions in the marketplace. Selling and administrative expenses for the three months ended December 31, 1994, were $6,050,000, or 15.6% of net sales, as compared to $6,730,000, or 14.8% of net sales, for the comparable period last year. Selling and Administrative expenses, in total dollars, decreased as a result of the decrease in net sales for the three month period. Selling and Administrative expenses, as a percentage of sales, increased for the period since total expenses did not decrease in proportion to the sales decrease. PART II. - OTHER INFORMATION ITEM 6. Exhibits and Reports on Form 8-K. a. Exhibits Exhibit 27. Financial Data Schedule b. Reports on Form 8-K No reports have been filed on Form 8-K during the quarter ended December 31, 1994. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on it's behalf by the undersigned thereunto duly authorized. GARAN, INCORPORATED BY:Seymour Lichtenstein Seymour Lichtenstein Principal Executive Officer BY:William J. Wilson William J. Wilson Principal Financial Officer DATE: February 14, 1995 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF EARNINGS AND BALANCE SHEETS OF GARAN, INCORPORATED AND SUBSIDIARIES ANNEXED HERETO AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000039917 GARAN, INCORPORATED 3-MOS SEP-30-1994 DEC-31-1994 11,097,000 23,101,000 20,450,000 514,000 21,238,000 78,543,000 31,238,000 15,976,000 109,342,000 10,509,000 3,163,000 2,535,000 0 0 90,455,000 109,342,000 38,668,000 38,668,000 31,264,000 31,264,000 0 0 39,000 1,840,000 718,000 1,122,000 0 0 0 1,122,000 0.22 0.22
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