-----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, JOJZFJPIdEKPGoZveQ7w75+u341nwBtfWSAUGAdIPH6q5UI8+rQ7Q724TaP81ULv xzJPLg23lNsOyrahVxpWTA== 0000039917-96-000011.txt : 19960514 0000039917-96-000011.hdr.sgml : 19960514 ACCESSION NUMBER: 0000039917-96-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 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: 96562042 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, 1996 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, 1996 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 3/31/96 3/31/95 __________________ __________________ Net sales $ 26,882,000 $ 28,380,000 Cost of sales 20,907,000 21,792,000 ____________ ____________ Gross margin on sales 5,975,000 6,588,000 Selling and administrative expenses 4,951,000 5,581,000 Interest on capitalized leases 29,000 30,000 Interest income (658,000) (747,000) _____________ _____________ Earnings before provision for income taxes 1,653,000 1,724,000 Provision for income taxes 651,000 672,000 ____________ ____________ Net earnings $ 1,002,000 $ 1,052,000 ============ ============ Earnings per share data: Earnings per share $ 0.20 $ 0.21 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 3/31/96 3/31/95 __________________ __________________ Net sales $ 59,906,000 $ 67,048,000 Cost of sales 47,457,000 53,056,000 ____________ ____________ Gross margin on sales 12,449,000 13,992,000 Selling and administrative expenses 9,834,000 11,631,000 Interest on capitalized leases 59,000 69,000 Interest income (1,316,000) (1,272,000) _____________ _____________ Earnings before provision for income taxes 3,872,000 3,564,000 Provision for income taxes 1,529,000 1,390,000 ____________ ____________ Net earnings $ 2,343,000 $ 2,174,000 ============ ============ Earnings per share data: Earnings per share $ 0.46 $ 0.43 Average common shares outstanding 5,070,000 5,070,000 Dividends paid per share $ 0.60 $ 0.60
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
3/31/96 9/30/95 _____________ _____________ ASSETS Current Assets: Cash and cash equivalents $ 5,942,000 $ 8,649,000 U.S. Government securities - short-term 18,936,000 20,424,000 Accounts receivable, less estimated uncollectibles of $514,000 at 3/31/96 and 9/30/95 14,240,000 25,746,000 Inventories 38,191,000 29,454,000 Other current assets 6,912,000 4,412,000 _____________ _____________ Total current assets 84,221,000 88,685,000 U.S. Government Securities - long-term 12,015,000 12,015,000 Property, plant and equipment, less accumulated depreciation and amortization 14,476,000 15,069,000 Other assets 4,757,000 4,662,000 _____________ _____________ TOTAL $ 115,469,000 $ 120,431,000 ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 4,148,000 $ 6,851,000 Accrued liabilities 9,911,000 11,005,000 Federal and state income taxes payable 1,764,000 2,227,000 Current portion of capitalized leases 154,000 154,000 _____________ _____________ Total current liabilities 15,977,000 20,237,000 _____________ _____________ Capitalized lease obligations, net of current portion 3,018,000 3,061,000 _____________ _____________ Deferred income taxes 2,858,000 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 3/31/96 and 9/30/95 2,535,000 2,535,000 Additional paid-in-capital 5,821,000 5,821,000 Retained earnings 85,260,000 85,959,000 _____________ _____________ Total shareholders' equity 93,616,000 94,315,000 _____________ _____________ TOTAL $ 115,469,000 $ 120,431,000 ============= =============
GARAN, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED 3/31/96 3/31/95 _____________ _____________ Cash Flows From Operating Activities: Net earnings $ 2,343,000 $ 2,174,000 Non cash items included in earnings: Depreciation and amortization 1,778,000 1,781,000 Provision for losses on accounts receivable 14,000 40,000 Deferred income taxes 40,000 130,000 Changes in assets and liabilities: U.S. Government Securities - short-term 1,488,000 (22,532,000) Accounts receivable 11,492,000 20,625,000 Inventories (8,737,000) (2,990,000) Other current assets (2,500,000) 57,000 Accounts payable (2,703,000) (1,121,000) Accrued liabilities (930,000) (2,362,000) Income taxes payable (463,000) (419,000) Other assets (95,000) (235,000) ______________ ______________ Net Cash Flows From Operating Activities 1,727,000 (4,852,000) ______________ ______________ Cash Flows From Investing Activities: Sale of U.S. Gov't securities - long-term 0 3,000,000 Purchase of U.S. Gov't securities - long-term 0 (987,000) Additions to property plant and equipment (1,349,000) (1,033,000) Proceeds from sales of property, plant and equipment 0 365,000 ______________ ______________ Net Cash Flows From Investing Activities (1,349,000) 1,345,000 ______________ ______________ Cash Flows From Financing Activities: Payment of dividends (3,042,000) (3,042,000) Repayment of capitalized lease obligations (43,000) (455,000) ______________ ______________ Net Cash Flows From Financing Activities (3,085,000) (3,497,000) ______________ ______________ Decrease in Cash and Cash Equivalents (2,707,000) (7,004,000) Cash and Cash Equivalents At Beginning of Period 8,649,000 7,664,000 ______________ ______________ Cash and Cash Equivalents At End of Period $ 5,942,000 $ 660,000 ============= ============= Supplemental Disclosures Cash Paid During The Period For: Interest $ 59,000 $ 69,000 Income taxes 1,494,000 1,424,000 ============= =============
GARAN, INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1996 (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:
3/31/96 09/30/95 ____________ ____________ Raw Materials $ 5,049,000 $ 5,135,000 Work in process 10,349,000 9,374,000 Finished Goods 22,793,000 14,945,000 ____________ ____________ $ 38,191,000 $ 29,454,000 ============ ============
ITEM 2. GARAN, INCORPORATED AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FINANCIAL CONDITION At March 31, 1996, working capital was $68,244,000, a decrease of $204,000 from September 30, 1995. Shareholders' equity at March 31, 1996, was $93,616,000, 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 book value decrease resulted primarily from the payment in November, 1995, of the fiscal year end special dividend and the regular quarterly dividends. RESULTS OF OPERATIONS Three and Six Month Periods Ended March 31, 1996 and March 31, 1995 Net sales for the three month period ended March 31, 1996, were $26,882,000, compared to $28,380,000 for the same period last year. Net earnings for the three month period were $1,002,000, equal to $0.20 per share, compared to $1,052,000, or $0.21 per share, last year. Net sales for the six month period ended March 31, 1996, were $59,906,000, compared to $67,048,000 for the same period last year. Net earnings for the six month period were $2,343,000, or $0.46 per share, as compared to $2,174,000, or $0.43 per share, last year. Gross margin for the three months ended March 31, 1996, was $5,975,000, or 22.2% of net sales, compared to $6,588,000, or 23.2% of net sales, for the comparable period last year. Gross margin for the six months ended March 31, 1996, was $12,449,000, or 20.8% of net sales, as compared to $13,992,000, or 20.9% of net sales, for the comparable period last year. The decreases in net sales and gross margin for the three and six month periods were caused by reduced unit sales resulting from prevailing competitive conditions in the marketplace. Selling and administrative expenses for the three month period ended March 31, 1996, were $4,951,000, or 18.4% of net sales, as compared to $5,581,000, or 19.7% of net sales, for the comparable period last year. Selling and administrative expenses for the six months ended March 31, 1996, were $9,834,000, or 16.4% of net sales, as compared to $11,631,000, or 17.3% 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. 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, 1996. 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 13, 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 6-MOS SEP-30-1995 SEP-30-1995 JAN-1-1996 OCT-1-1995 MAR-31-1996 MAR-31-1996 5,942,000 5,942,000 18,936,000 18,936,000 14,754,000 14,754,000 514,000 514,000 38,191,000 38,191,000 84,221,000 84,221,000 33,983,000 33,983,000 19,507,000 19,507,000 115,469,000 115,469,000 15,977,000 15,977,000 3,018,000 3,018,000 2,535,000 2,535,000 0 0 0 0 93,616,000 93,616,000 115,469,000 115,469,000 26,882,000 59,906,000 26,882,000 59,906,000 20,907,000 47,457,000 20,907,000 47,457,000 0 0 0 0 29,000 59,000 1,653,000 3,872,000 651,000 1,529,000 0 0 0 0 0 0 0 0 1,002,000 2,343,000 0.20 0.46 0 0
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