-----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, UV7PPozcUVoC/nfOyfmhYTihNjdfGClMmTh3Kx12Q5XyvRbMT3RUn2Vmo9OjQ8pg FS0qlPtapRJsmD3CuMkHIQ== 0000039917-95-000012.txt : 19950512 0000039917-95-000012.hdr.sgml : 19950512 ACCESSION NUMBER: 0000039917-95-000012 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: 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: 95536726 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 March 31, 1995 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 March 31, 1995 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 3/31/95 3/31/94 __________________ __________________ Net sales $ 28,380,000 $ 36,898,000 Cost of sales 21,792,000 26,346,000 ____________ ____________ Gross margin on sales 6,588,000 10,552,000 Selling and administrative expenses 5,581,000 6,919,000 Interest on capitalized leases 30,000 36,000 Interest income (747,000) (386,000) _____________ _____________ Earnings before provision for income taxes 1,724,000 3,983,000 Provision for income taxes 672,000 1,554,000 ____________ ____________ Net earnings $ 1,052,000 $ 2,429,000 Earnings per share data: Earnings per share $ 0.21 $ 0.48 Average common shares outstanding 5,070,000 5,070,000 Dividends paid per share $ 0.20 $ 0.20
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
SIX MONTHS ENDED 3/31/95 3/31/94 __________________ __________________ Net sales $ 67,048,000 $ 82,233,000 Cost of sales 53,056,000 60,148,000 ____________ ____________ Gross margin on sales 13,992,000 22,085,000 Selling and administrative expenses 11,631,000 13,649,000 Interest on capitalized leases 69,000 77,000 Interest income (1,272,000) (756,000) _____________ _____________ Earnings before provision for income taxes 3,564,000 9,115,000 Provision for income taxes 1,390,000 3,555,000 ____________ ____________ Net earnings $ 2,174,000 $ 5,560,000 Earnings per share data: Earnings per share $ 0.43 $ 1.10 Average common shares outstanding 5,070,000 5,070,000 Dividends paid per share $ 0.60 $ 1.40
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
3/31/95 9/30/94 _____________ _____________ ASSETS Current Assets: Cash and cash equivalents $ 660,000 $ 7,664,000 U.S. Government securities - short-term 28,032,000 20,559,000 Accounts receivable, less estimated uncollectibles of $514,000 at 3/31/95 and $507,000 at 9/30/94 19,042,000 39,707,000 Inventories 30,871,000 27,881,000 Other current assets 3,028,000 3,085,000 _____________ _____________ Total current assets 81,633,000 98,896,000 U.S. Government Securities - long-term 13,046,000 0 Property, plant and equipment, less accumulated depreciation and amortization 14,644,000 15,544,000 Other assets 2,414,000 2,607,000 _____________ _____________ TOTAL $ 111,737,000 $ 117,047,000
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 5,425,000 $ 6,546,000 Accrued liabilities 6,954,000 9,531,000 Federal and state income taxes payable 394,000 813,000 Current portion of capitalized leases 143,000 151,000 _____________ _____________ Total current liabilities 12,916,000 17,041,000 _____________ _____________ Capitalized lease obligations, net of current portion 3,173,000 3,620,000 _____________ _____________ Deferred income taxes 2,620,000 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 3/31/95 and 9/30/94 2,535,000 2,535,000 Additional paid-in-capital 5,821,000 5,821,000 Retained earnings 84,672,000 85,540,000 _____________ _____________ Total shareholders' equity 93,028,000 93,896,000 _____________ _____________ TOTAL $ 111,737,000 $ 117,047,000
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED 3/31/95 3/31/94 _____________ _____________ Cash Flows From Operating Activities: Net earnings $ 2,174,000 $ 5,560,000 Non cash items included in earnings: Depreciation and amortization 1,781,000 1,787,000 Provision for losses on accounts receivable 40,000 93,000 Deferred income taxes 130,000 0 Changes in assets and liabilities: U.S. Government Securities - short-term (22,532,000) 0 Accounts receivable 20,625,000 14,784,000 Inventories (2,990,000) (4,873,000) Other current assets 57,000 (34,000) Accounts payable (1,121,000) 332,000 Accrued liabilities (2,790,000) (3,154,000) Income taxes payable (419,000) (914,000) Other assets 193,000 652,000 ______________ ______________ Net Cash Flows From Operating Activities (4,852,000) 14,233,000 ______________ ______________ Cash Flows From Investing Activities: Sale of U.S. Gov't securities - long-term 3,000,000 13,125,000 Purchase of U.S. Gov't securities - long-term (987,000) (18,182,000) Additions to property plant and equipment (1,033,000) (1,673,000) Proceeds from sales of property, plant and equipment 365,000 68,000 ______________ ______________ Net Cash Flows From Investing Activities 1,345,000 (6,662,000) ______________ ______________ Cash Flows From Financing Activities: Payment of dividends (3,042,000) (7,098,000) Repayment of capitalized lease obligations (455,000) (770,000) ______________ ______________ Net Cash Flows From Financing Activities (3,497,000) (7,868,000) ______________ ______________ Decrease in Cash and Cash Equivalents (7,004,000) (297,000) Cash and Cash Equivalents At Beginning of Period (7,664,000) 3,802,000 ______________ ______________ Cash and Cash Equivalents At End of Period $ 660,000 $ 3,505,000 Supplemental Disclosures Cash Paid During The Period For: Interest $ 69,000 $ 77,000 Income taxes 1,424,000 4,470,000
GARAN, INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1995 (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:
3/31/95 09/30/94 ____________ ____________ Raw Materials $ 14,549,000 $ 7,135,000 Work in process 9,636,000 10,735,000 Finished Goods 6,686,000 10,011,000 ____________ ____________ $ 30,871,000 $ 27,881,000
4. Effective October 1, 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 (Current Assets) or held-to-maturity (Non-Current Assets). Trading securities are reported at fair value, with changes in fair value reported in earnings. 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 March 31, 1995, working capital was $68,717,000, a decrease of $13,138,000 from September 30, 1994. As noted in footnote 4, effective for the 1995 fiscal year the registrant adopted Statement of Financial Accounting Standards No. 115 (SFAS 115). SFAS 115 requires that investments held-to-maturity be classified as long term. Pursuant to SFAS 115, $13,046,000 of investments previously classified as short term (and included in working capital) have been classified as long term (and not included in 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 March 31, 1995, was $93,028,000 or $18.35 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 in November, 1994, of the 1994 fiscal year end special dividend and the regular quarterly dividend. RESULTS OF OPERATIONS Three and Six Month Periods Ended March 31, 1995 and March 31, 1994 Net sales for the three month period ended March 31, 1995, were $28,380,000, compared to $36,898,000 for the same period last year. Net earnings for the three month period were $1,052,000, equal to $0.21 per share, compared to $2,429,000, or $0.48 per share, last year. Net sales for the six month period ended March 31, 1995, were $67,048,000, compared to $82,233,000 for the same period last year. Net earnings for the six month period were $2,174,000, or $0.43 per share, as compared to $5,560,000, or $1.10 per share, last year. Gross margin for the three months ended March 31, 1995, was $6,588,000, or 23.2% of net sales, compared to $10,552,000, or 28.6% of net sales, for the comparable period last year. Gross margin for the six months ended March 31, 1995, was $13,992,000, or 20.9% of net sales, as compared to $22,085,000, or 26.9% of net sales, for the comparable period last year. The decreases in net sales and gross margin for the three and six month periods reflects reduced unit sales, lower average unit selling prices resulting from prevailing competitive conditions in the marketplace, and increased costs. Selling and administrative expenses for the three month period ended March 31, 1995, were $5,581,000, or 19.7% of net sales, as compared to $6,919,000, or 18.8% of net sales, for the comparable period last year. Selling and administrative expenses for the six months ended March 31, 1995, were $11,631,000, or 17.3% of net sales, as compared to $13,649,000, or 16.6% 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 and six month periods. Selling and administrative expenses as a percentage of sales increased for both periods since total expenses did not decrease in proportion to the decrease in sales. 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 March 31, 1995. 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: May 11, 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 6-MOS SEP-30-1994 SEP-30-1994 JAN-1-1995 OCT-1-1994 MAR-31-1995 MAR-31-1995 660,000 660,000 28,032,000 28,032,00 19,042,000 19,042,000 514,000 514,000 30,871,000 30,871,000 81,633,000 81,633,000 32,172,000 32,172,000 17,528,000 17,528,000 111,737,000 111,737,000 12,916,000 12,916,000 3,173,000 3,173,000 2,535,000 2,535,000 0 0 0 0 90,493,000 90,493,000 111,737,000 111,737,000 28,380,000 67,048,000 28,380,000 67,048,000 21,792,000 53,056,000 21,792,000 53,056,000 0 0 0 0 30,000 69,000 1,724,000 3,564,000 672,000 1,390,000 1,052,000 2,174,000 0 0 0 0 0 0 1,052,000 1,052,000 0.21 0.43 0.21 0.43
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