-----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, TbqJSsmdZtPuYeTPZq5heTrJSmCmuXNn1yJvBavAuKZcM1RKWYKTOd/l10xGgPBF KaHFW71YBT/XeDm6IBzjzA== 0000046613-95-000006.txt : 19950511 0000046613-95-000006.hdr.sgml : 19950511 ACCESSION NUMBER: 0000046613-95-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19941001 FILED AS OF DATE: 19950510 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEIN WERNER CORP CENTRAL INDEX KEY: 0000046613 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 390340430 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-02725 FILM NUMBER: 95536109 BUSINESS ADDRESS: STREET 1: 2120 N PEWAUKEE RD STREET 2: PO BOX 1606 CITY: WAUKESHA STATE: WI ZIP: 53188-2404 BUSINESS PHONE: 4145426611 MAIL ADDRESS: STREET 1: 2120 N PEWWAUKEE ROAD STREET 2: PO BOX 1606 CITY: WAUKESHA STATE: WI ZIP: 53188-2404 10-Q 1 SECURITIES AND EXCHANGE COMMISSION 450 Fifth Street, N.W. Washington, D.C. 20549 Form 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the Quarterly Period Ended: April 1, 1995 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 1-2725 HEIN-WERNER CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) WISCONSIN 39-0340430 ------------------------------- ---------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification Number) 2120 Pewaukee Road, Waukesha, Wisconsin 53188-2404 --------------------------------------- ---------------------- (Address of principal executive offices) (Zip Code) (414) 542-6611 ---------------------------------------------------- (Registrant's telephone number, including area code) 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 that 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 [ ] Number of shares of $1 par value common stock issued and outstanding at May 10, 1995: Issued 2,504,126 Treasury 2,957 ---------- Outstanding 2,501,169 ========== PART I - FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets - (Unaudited) ($000) April 1, December 31, 1995 1994 -------- -------- ASSETS CURRENT ASSETS: Cash $ 368 $ 466 Customers' accounts receivable 22,422 21,545 Less allowance for losses 1,751 1,670 -------- -------- 20,671 19,875 Inventories 16,152 16,154 Prepaid expenses and other 440 350 Income tax benefit receivable 557 508 -------- -------- TOTAL CURRENT ASSETS 38,188 37,353 PROPERTY, PLANT AND EQUIPMENT, AT COST: Land 90 90 Buildings 2,851 2,839 Machinery and equipment 13,470 13,101 -------- -------- 16,411 16,030 Less accumulated depreciation 11,144 10,765 -------- -------- NET PROPERTY, PLANT AND EQUIPMENT 5,267 5,265 OTHER ASSETS: Patents, net of accumulated amortization of $517 for 1995 and $513 for 1994 47 51 Excess cost over net assets of acquired companies, net of accumulated amortization of $762 for 1995 and $747 for 1994 1,520 1,535 Deferred debt issuance costs, net of accumulated amortization of $400 for 1995 and $376 in 1994 73 97 Receivables, net of allowances of $955 in 1995 and $955 for 1994 1,341 1,452 Other 360 348 -------- -------- TOTAL OTHER ASSETS 3,341 3,483 -------- -------- $46,796 $46,101 ======== ======== [FN] See accompanying notes to consolidated financial statements. Consolidated Balance Sheets - (Unaudited) ($000) April 1, December 31, 1995 1994 -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable $ 3,520 $ 3,189 Current installments of long-term debt 327 316 Accounts payable 7,449 7,302 Accrued payroll and related expenses 2,652 2,705 Accrued expenses related to a disposed business 355 354 Accrued expenses, other 3,040 3,164 -------- -------- TOTAL CURRENT LIABILITIES 17,343 17,030 Long-term debt, excluding current installments 12,607 13,256 Liabilities related to a disposed business 606 689 Other 659 804 -------- -------- TOTAL LIABILITIES 31,215 31,779 STOCKHOLDERS' EQUITY: Common stock of $1 par value per share Authorized: 20,000,000 shares; Issued: 2,504,421 shares at April 1, 1995 and 2,386,477 at December 31, 1994 2,504 2,386 Capital in excess of par value 11,377 11,377 Retained earnings 1,129 827 Cumulative translation adjustments 949 110 -------- -------- 15,959 14,700 Less cost of common shares in treasury - 21,707 shares at April 1, 1995 and at December 31, 1994 378 378 -------- -------- TOTAL STOCKHOLDERS' EQUITY 15,581 14,322 -------- -------- $46,796 $46,101 ======== ======== [FN] See accompanying notes to consolidated financial statements. Consolidated Statements of Operations - (Unaudited) ($000) (except per share data) Three months ended ---------------------- April 1, April 2, 1995 1994 -------- -------- Net sales $18,512 $15,873 Cost of sales 11,786 10,261 -------- -------- Gross profit 6,726 5,612 Selling, engineering and administrative expenses 5,803 5,142 -------- -------- Operating profit 923 470 Interest expense 484 396 Other income, net (2) (112) -------- -------- Income before income taxes 441 186 Income tax expense 19 63 -------- -------- NET INCOME $ 422 $ 123 ======== ======== Earnings per share - primary $ 0.17 $ 0.05 ======== ======== Earnings per share - fully diluted $ 0.16 $ 0.07 ======== ======== [FN] See accompanying notes to consolidated financial statements. Consolidated Statements of Cash Flows - (Unaudited) Three Months Ended --------------------- April 1, April 2, 1995 1994 -------- -------- CASH FROM OPERATING ACTIVITIES: Net income $ 422 $ 123 Adjustment to net income for expenses (gains) not affecting cash: Depreciation and amortization 330 334 Bad debt expenses 120 42 Increase (decrease) in cash due to changes in: Accounts receivable (916) 851 Inventories 2 (1,116) Prepaid expenses and other assets (54) (16) Accounts payable 147 (365) Accrued expenses and other liabilities (406) 336 -------- -------- Cash provided by (used in) operating activities............................... (355) 189 CASH USED IN INVESTING ACTIVITIES: Capital expenditures......................... (275) (210) CASH FROM FINANCING ACTIVITIES: Increase (decrease) in notes payable 332 17 Proceeds from long-term debt -- 372 Repayment of long-term debt (638) (351) -------- -------- Cash provided by (used in) financing activities............................... (306) 38 Cumulative translation adjustments........... 838 193 -------- -------- TOTAL CASH PROVIDED (USED) (98) 210 CASH - BEGINNING OF THE PERIOD 466 339 -------- -------- CASH - END OF THE PERIOD $ 368 $ 549 ======== ======== [FN] See accompanying notes to consolidated financial statements. NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS ACCOUNTING POLICIES: The financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results of the interim periods presented. All adjustments, other than adjustments to the accrual of expenses related to the discontinued business which is included as a current liability on the balance sheet, are normal and recurring. All items stated herein are subject to year-end audit. INVENTORY: ================================================================= (Amounts in thousands) 4/1/95 12/31/94 ----------------------------------------------------------------- Raw Material $ 5,790 $ 5,902 Work-in-Process 1,686 1,481 Finished Goods 8,675 8,771 ----------------------------------------------------------------- $ 16,151 $ 16,154 ================================================================= MATERIAL CONTINGENCIES: A) Financial Instruments with Off-Balance-Sheet Risk. To meet the financing needs of consumers of its collision repair and engine rebuilding products the Company is, in the normal course of business, a party to financial instruments with off- balance-sheet risk. The instruments are guarantees of notes payable to financing institutions arranged by the Company. The Company performs credit reviews on all such guarantees. These guarantees extend for periods up to six years and expire in decreasing amounts through 2000. The amount guaranteed to each institution is contractually limited to a portion of the amount financed in a given year. The notes are collateralized by the equipment financed. Proceeds from the resale of recovered equipment have generally been 80% to 90% of repurchased notes. The maximum credit risk to the Company at December 31, 1994 was approximately $3,400,000. B) Litigation The Company is involved in legal proceedings, claims and administrative actions arising in the normal course of business. In the opinion of management, the Company's liability, if any, under any pending litigation or administrative proceeding would not materially affect its financial condition or operations. C) Environmental Claims From time to time the Company is identified as a potentially responsible party in environmental matters, primarily related to waste disposal sites, which contain residuals from the manufacturing process which were previously disposed of by the Company in accordance with applicable regulations in effect at the time of disposal. Materials generated by the Company in these sites have been small and claims against the Company have been handled on a de minimis basis. In addition, the Company has indemnified purchasers of property previously sold by the Company, against any environmental damage which may have existed at the time of the sale. In the opinion of management, the Company's liability, if any, under any pending administrative proceeding or claim, would not materially affect its financial condition or operations. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Net sales for the first quarter of 1995 were $18.5 million, up 16.6% over the same period of 1994. Sales originating in North America rose 17.2% to $12.4 million for the quarter compared to $10.6 million in the same period of the prior year. European sales were also up for the quarter from $5.3 million in 1994 to $6.1 million for the first quarter of 1995. Net sales for all three business segments were again higher in the 1995 quarter than in the comparable quarter of 1994. Gross profit margins in North America improved in the first quarter from 29.4% in 1994 to 30.2% in 1995. Margins in Europe also improved moving from 47.3% in 1994 to 48.8% for the 1995 first quarter. Consolidated gross profit margins were 36.3% for the first quarter of 1995 compared to 35.4% for the same period of 1994. Operating expenses decreased as a percent of net sales, from 32.4% in the 1994 period to 31.3% in 1995. While actual expenses were slightly higher in 1995 than in 1994, the bulk of the increased spending was in sales commissions and in other marketing expenses. The increases were attributed to the increased sales volume. Interest expense rose slightly for the three months ended April 1, 1995, as a result of rising interest rates. Financial Condition Continued improved operating results along with aggressive inventory management emphasis has resulted in a decline in long- term borrowing. Continued improvements are expected. The Company expects its liquidity requirements will be met by cash generated from operations and from its credit facilities. Short-term credit facilities in Europe are considered sufficient to supplement cash from operating activities to satisfy liquidity requirements there. Changes in short-term borrowing are primarily due to seasonal cash usage patterns. PART II - OTHER INFORMATION ITEM 6: (a) Exhibits (11) Computation of Earnings Per Share (27) Financial Data Schedule (b) Form 8-K There were no reports on Form 8-K filed for the three months ended April 1, 1995. SIGNATURE 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. HEIN-WERNER CORPORATION ("Registrant") Edward F. Duffy Vice President - Finance and Treasurer (Principal Financial Officer) May 10, 1995 ---------------------- Date Index of Exhibits Exhibit No. Description ----------- ------------------------------------------------- (11) Computation of Earnings Per Share (27) Financial Data Schedule EX-11 2 Computation of Earnings per Share EXHIBIT 11 ($000) (except per share data)
The three months ended ------------------------- April 1, April 2, 1995 1994 ----------- ----------- PRIMARY: Weighted average common shares outstanding 2,482 2,482 Common equivalent shares 0 0 ----------- ----------- Weighted average common shares and commom equivalent shares outstanding 2,482 2,482 =========== =========== Net income applicable to common shares $ 422 $ 123 =========== =========== Prmiary earnings per share $ 0.17 $ 0.05 =========== =========== FULLY DILUTED: Weighted average common shares outstanding 2,482 2,482 Common equivalent shares 0 0 Additional shares assuming conversion of subordinated debentures 683 650 ----------- ----------- Fully diluted weighted average common shares and common equivalent shares outstanding 3,165 3,132 =========== =========== Net income for diluted common shares $ 513 $ 214 =========== =========== Fully diluted earnings per share $ 0.16 $ 0.07 =========== =========== Common shares have been adjusted to give effect to the 5% stock dividend paid January 27, 1995. The $4,500,000 8% Convertible Subordinated Notes are convertible to common shares at a price of $6.59 per share after giving effect to the stock dividend paid January 27, 1995. Earnings per common share and common equivalent share were computed by dividing the net income by the weighted average number of shares of common stock and common stock equivalents outstanding during the period. Earnings per common share, assuming full dilution, is determined by assuming that at the beginning of the period convertible notes were converted at the price per share in effect at that time and common share options were excercised. As to the options, incremental shares would be calculated using the treasury stock method, assuming common share purchases at the greater of the average market price of the common shares for the period or the ending price of the common shares.
EX-27 3 ART. 5 - FDS FOR 1ST QUARTER 10-Q (EXHIBIT 27)
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS AS OF APRIL 1, 1995, THE CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED APRIL 1, 1995, AND THE COMPUTATION OF EARNINGS PER SHARE (EXHIBIT 11) FOR THE THREE MONTHS ENDED APRIL 1, 1995; AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1000 3-MOS DEC-31-1995 APR-01-1995 368 0 22,422 1,751 16,152 38,188 16,411 11,144 46,796 17,343 0 2,504 0 0 13,077 46,796 18,512 18,512 11,786 11,786 0 0 484 441 19 422 0 0 0 422 0.17 0.16
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