-----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, Ey/F0U1LFNnVpmDn6OXtuut7/HNEpzQ7yRif9HxeYtoBoXdoeUm0d63WxUdjmDmj 5iH9dMEOnhhKNt5PCHMyCg== 0000039917-96-000004.txt : 19960216 0000039917-96-000004.hdr.sgml : 19960216 ACCESSION NUMBER: 0000039917-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 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: 96520242 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, 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 December 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 12/31/95 12/31/94 __________________ __________________ Net sales $ 33,024,000 $ 38,668,000 Cost of sales 26,550,000 31,264,000 ____________ ____________ Gross margin on sales 6,474,000 7,404,000 Selling and administrative expenses 4,883,000 6,050,000 Interest on capitalized leases 30,000 39,000 Interest income (658,000) (525,000) _____________ _____________ Earnings before provision for income taxes 2,219,000 1,840,000 Provision for income taxes 878,000 718,000 ____________ ____________ Net earnings $ 1,341,000 $ 1,122,000 Earnings per share data: Earnings per share $ 0.26 $ 0.22 Average common shares outstanding 5,070,000 5,070,000 Dividends paid per share $ 0.40 $ 0.40
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
12/31/95 9/30/95 ASSETS Current Assets: Cash and cash equivalents $ 10,559,000 $ 8,649,000 U.S. Government securities - short-term 19,689,000 20,424,000 Accounts receivable, less estimated uncollectibles of $514,000 at 12/31/95 and 9/30/95 16,586,000 25,746,000 Inventories 29,780,000 29,454,000 Other current assets 6,236,000 4,412,000 Total current assets 82,850,000 88,685,000 U.S. Government Securities - long-term 12,015,000 12,015,000 Property, plant and equipment, less accumulated depreciation and amortization 14,784,000 15,069,000 Other assets 4,809,000 4,662,000 TOTAL $ 114,458,000 $ 120,431,000
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 3,859,000 $ 6,851,000 Accrued liabilities 8,664,000 11,005,000 Federal and state income taxes payable 2,277,000 2,227,000 Current portion of capitalized leases 154,000 154,000 Total current liabilities 14,954,000 20,237,000 Capitalized lease obligations, net of current portion 3,038,000 3,061,000 Deferred income taxes 2,838,000 2,818,000 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 12/31/95 and 9/30/95 2,535,000 2,535,000 Additional paid-in-capital 5,821,000 5,821,000 Retained earnings 85,272,000 85,959,000 Total shareholders' equity 93,628,000 94,315,000 TOTAL $ 114,458,000 $ 120,431,000
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED 12/31/95 12/31/94 Cash Flows From Operating Activities: Net earnings $ 1,341,000 $ 1,122,000 Non cash items included in earnings: Depreciation and amortization 881,000 893,000 Provision for losses on accounts receivable 4,000 37,000 Deferred income taxes 20,000 190,000 Changes in assets and liabilities: U.S. Government Securities - short-term 735,000 (14,557,000) Accounts receivable 9,156,000 19,220,000 Inventories (326,000) 6,643,000 Other current assets (1,824,000 428,000 Accounts payable (2,992,000) (3,532,000) Accrued liabilities (2,341,000) 2,717,000 Income taxes payable 50,000 (61,000) Other assets (147,000) (125,000) Net Cash Flows From Operating Activities 4,557,000 7,655,000 Cash Flows From Investing Activities: Sale of U.S. Gov't securities - long-term 0 0 Purchase of U.S. Gov't securities - long-term 0 (1,012,000) Additions to property plant and equipment (596,000) (772,000) Proceeds from sales of property, plant and equipment 0 47,000 Net Cash Flows From Investing Activities (596,000) (1,737,000) Cash Flows From Financing Activities: Payment of dividends (2,028,000) (2,028,000) Repayment of capitalized lease obligations (23,000) (457,000) Net Cash Flows From Financing Activities (2,051,000) (2,485,000) Increase in Cash and Cash Equivalents 1,910,000 3,433,000 Cash and Cash Equivalents At Beginning of Period 8,649,000 7,664,000 Cash and Cash Equivalents At End of Period $ 10,559,000 $ 11,097,000 Supplemental Disclosures Cash Paid During The Period For: Interest $ 30,000 $ 39,000 Income taxes 1,157,000 169,000
GARAN, INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 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:
12/31/95 09/30/95 ____________ ____________ Raw Materials $ 5,159,000 $ 5,135,000 Work in process 9,545,000 9,374,000 Finished Goods 15,076,000 14,945,000 ____________ ____________ $ 29,780,000 $ 29,454,000
ITEM 2. GARAN, INCORPORATED AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION At December 31, 1995, working capital was $67,896,000, a decrease of $552,000 from September 30, 1995. Shareholders' equity at December 31, 1995, was $93,628,000, or $18.46 book value per share, as compared to $94,315,000, or $18.60 book value per share, at September 30, 1995. The decrease in book value resulted from the payment in November, 1995, of the 1995 fiscal year end special dividend and the first fiscal 1996 regular quarterly dividend. RESULTS OF OPERATIONS Three Month Periods Ended December 31, 1995, and December 31, 1994. Net sales for the three month period ended December 31, 1995, were $33,024,000, compared to $38,668,000 for the same period last year. Net earnings for the three month period were $1,341,000, equal to $0.26 per share, compared to $1,122,000, or $0.22 per share, last year. Gross margin for the three months ended December 31, 1995, was $6,474,000, or 19.6% of net sales, compared to $7,404,000, or 19.2% of net sales, for the comparable period last year. The decreases in net sales and gross margin for the three month period reflect reduced unit sales, primarily in our sports licensing and Disney divisions, and slightly lower average unit selling prices resulting from prevailing competitive conditions in the marketplace. Selling and administrative expenses for the three months ended December 31, 1995, were $4,883,000, or 14.8% of net sales, as compared to $6,050,000, or 15.6% of net sales, for the comparable period last year. Selling and administrative expenses declined primarily as a result of reduced royalty and commission expenses associated with reduced sales in our sports licensing and Disney divisions. The decrease in selling and administrative expenses as a percentage of net sales, coupled with the increase in the gross margin rate, resulted in the increase in net earnings as a percentage of net sales to 4.1% for the three month period ended December 31, 1995, as compared to 2.9% for the comparable period last year. 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, 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: February 14, 1996 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-30-1996 OCT-1-1995 DEC-31-1995 10,559,000 19,689,000 17,100,000 514,000 29,780,000 82,850,000 33,410,000 18,626,000 114,458,000 14,954,000 3,038,000 2,535,000 0 0 91,093,000 114,458,000 33,024,000 33,024,000 26,550,000 26,550,000 0 0 30,000 2,219,000 878,000 0 0 0 0 1,341,000 0.26 0
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