-----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, SEDgJJwvAp8ohmNTAUthdQdwriDwScaAC6IowVIEFhMx4rv362GzbRp8pL5M7s0i XpKoPpz0/WN8iORZ5YHocA== 0000054681-95-000009.txt : 19950516 0000054681-95-000009.hdr.sgml : 19950516 ACCESSION NUMBER: 0000054681-95-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KATY INDUSTRIES INC CENTRAL INDEX KEY: 0000054681 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 751277589 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20465 FILM NUMBER: 95539786 BUSINESS ADDRESS: STREET 1: 6300 S SYRACUSE WAY SUITE 300 CITY: ENGLEWOOD STATE: CO ZIP: 80111-6723 BUSINESS PHONE: 3034860017 MAIL ADDRESS: STREET 1: 6300 S SYRACUSE WAY SUITE 300 CITY: ENGLEWOOD STATE: CO ZIP: 80111 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 Quarter Ended: March 31, 1995 Commission File Number 1-5558 Katy Industries, Inc. (Exact name of registrant as specified in its charter) Delaware 75-1277589 (State of Incorporation) (I.R.S. Employer Identification No.) 6300 S. Syracuse Way, Suite 300, Englewood, Colorado 80111 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (303)290-9300 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 No X Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. Class Outstanding at March 31, 1995 Common stock, $1 par value 9,076,387 KATY INDUSTRIES, INC. FORM 10-Q MARCH 31, 1995 INDEX Page No. PART I FINANCIAL INFORMATION Condensed Consolidated Balance Sheets March 31, 1995 and December 31, 1994 2 Statements of Condensed Consolidated Operations Three months ended March 31, 1995 and 1994 4 Statements of Condensed Consolidated Cash Flows Three months ended March 31, 1995 and 1994 5 Notes to Condensed Consolidated Financial Information 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 10 PART II OTHER INFORMATION Item 1 Legal Proceedings 15 Item 6 Exhibits and Reports on Form 8-K 16 Signatures 16
KATY INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS MARCH 31, 1995 AND DECEMBER 31, 1994 March 31, December 31, 1995 1994 (Thousands of Dollars) CURRENT ASSETS: Cash and cash equivalents $ 2,607 $ 8,475 Marketable securities - available for sale 27,812 23,756 Accounts receivable, trade, net of allowance for doubtful accounts of $3,943 and $3,183 28,147 20,423 Notes and other receivables, net of allowance for doubtful notes of $504 and $854 3,270 2,112 Inventories - Note 1 45,903 31,312 Other current assets 13,413 13,784 Total current assets 121,152 99,862 OTHER ASSETS: Investments, at equity, in unconsolidated subsidiaries - Note 3 46,524 45,310 Investments, at cost - Note 4 411 406 Investment in waste-to-energy facility 11,647 11,759 Notes receivable, net of allowance for doubtful notes of $2,500 1,568 2,283 Miscellaneous 10,593 4,982 Total other assets 70,743 64,740 PROPERTIES, at cost: Land and improvements 5,275 4,868 Buildings and improvements 34,537 25,152 Machinery and equipment 55,473 56,743 95,285 86,763 Accumulated depreciation ( 48,608) ( 48,223) Net properties 46,677 38,540 $238,572 $203,142 See Notes to Condensed Consolidated Financial Information.
KATY INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS MARCH 31, 1995 AND DECEMBER 31, 1994 March 31, December 31, 1995 1994 (Thousands of Dollars) CURRENT LIABILITIES: Notes payable - banks $ 26,558 $ 7,948 Accounts payable 10,996 6,807 Accrued compensation 5,614 6,180 Accrued expenses 29,428 25,060 Accrued interest and taxes 914 773 Current maturities, long-term debt 2,559 2,407 Dividends payable 646 646 Total current liabilities 76,715 49,821 LONG-TERM DEBT, less current maturities 13,568 10,572 OTHER LIABILITIES 36,580 31,759 MINORITY INTEREST 215 212 STOCKHOLDERS' EQUITY Common stock, $1 par value, authorized 25,000,000 shares, issued 9,821,329 shares 9,821 9,821 Additional paid-in capital 51,111 51,111 Foreign currency translation and other adjustments 2,207 2,676 Unrealized holding gain, net of tax 6,916 4,426 Retained earnings 54,282 55,587 Treasury stock, 803,942 shares ( 12,843) ( 12,843) Total stockholders' equity 111,494 110,778 $238,572 $203,142 See Notes to Condensed Consolidated Financial Information.
KATY INDUSTRIES, INC. STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS THREE MONTHS ENDED MARCH 31, 1995 AND 1994 1995 1994 (Thousands of Dollars Except Per Share Data) Net sales $ 38,358 $ 38,423 Costs and expenses: Cost of goods sold 26,456 27,036 Selling, general and administrative 10,954 9,863 Depreciation and amortization 1,378 1,544 Interest expense 418 520 Interest income ( 276) ( 1,225) Other, net - Note 4 237 6,350 39,167 44,088 Loss from consolidated operations before provision for income taxes ( 809) ( 5,665) Benefit (Provision) for income taxes ( 628) 1,864 Loss from consolidated operations ( 1,437) ( 3,801) Equity in income of unconsolidated subsidiaries (net of tax) - Note 3 700 613 Net loss ($ 737) ($ 3,188) Loss per share ($ .08) ($ .35) Average shares outstanding (in thousands) 9,076 9,017 Dividends per share - Common stock $1.00 par value $ .0625 $ .0625 See Notes to Condensed Consolidated Financial Information.
KATY INDUSTRIES, INC. STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS THREE MONTHS ENDED MARCH 31, 1995 AND 1994 1995 1994 (Thousands of Dollars) Cash flows from operating activities: Net loss ($ 737) ($ 3,188) Write off of investment - 6,580 Gain on sale of assets ( 3) ( 4) Adjustments to reconcile net loss to net cash flows from operating activities 929 ( 6,057) Net cash flows from operating activities 189 ( 2,669) Cash flows from investing activities: Proceeds from sale of assets 41 204 Collections of notes receivable 143 108 Purchase of subsidiary, net of cash acquired ( 23,717) ( 2,226) Capital expenditures ( 3,372) ( 731) Net cash flows from investing activities ( 26,905) ( 2,645) Cash flows from financing activities: Notes payable activity, net 18,267 ( 36) Principal payments on long-term debt ( 1,150) ( 1,467) Payment of dividends ( 567) ( 564) Proceeds from issuance of long-term debt 4,298 4 Net cash flows from financing activities 20,848 ( 2,063) Net (decrease) in cash and cash equivalents ( 5,868) ( 7,377) Cash and cash equivalents beginning of period 8,475 130,289 Cash and cash equivalents end of period $ 2,607 $122,912 See Notes to Condensed Consolidated Financial Information.
(1) Significant Accounting Policies Consolidation Policy The financial statements include, on a consolidated basis, the accounts of Katy Industries, Inc. and subsidiaries (Katy) in which it has greater than 50% interest. The information furnished reflects all known adjustments which are, in the opinion of management, necessary for a fair presentation. Interim figures are subject to year-end audit adjustments. Inventories The components of inventories are as follows: March 31, December 31, 1995 1994 Raw materials $11,737 $11,304 Work in process 8,798 7,137 Finished goods 25,368 12,871 $45,903 $31,312 (2) Acquisitions: Effective March 31, 1995 Katy purchased all of the outstanding shares of common stock of GC Thorsen, Inc. (GCT), a leading value-added marketer and distributor of electronic and electrical parts and accessories and nonpowered handtools. The purchase price, including acquisition costs, was approximately $24,000,000, of which $19,500,000 was financed through Katy's bank line of credit. The acquisition has been accounted for under the purchase method and the balance sheet of GCT as of March 31, 1995 has been included in Katy's Condensed Consolidated Balance Sheet. The excess of the purchase price over the fair value of the net assets acquired of approximately $4,200,000 will be amortized over 20 years. (3) Investments in Unconsolidated Subsidiaries, at Equity Katy's investments in unconsolidated subsidiaries are comprised of the following: March 31, December 31, 1995 1994 Syratech Corporation $39,570 $38,325 Bee Gee Holding Company, Inc. 6,954 6,985 $46,524 $45,310
(3) Investments in Unconsolidated Subsidiaries, at Equity (Continued) The condensed financial information which follows reflects Katy's proportionate share in the financial position and results of operations of all of its unconsolidated subsidiaries: March 31, December 31, 1995 1994 (Thousands of Dollars) Current assets $43,630 $40,475 Current liabilities ( 18,350) ( 16,196) Working capital 25,280 24,278 Properties, net 28,281 27,590 Other assets 1,790 836 Long-term debt ( 6,124) ( 4,894) Other liabilities ( 3,174) ( 3,086) Stockholders' equity 46,053 44,724 Unamortized excess of cost over net assets acquired 483 586 Investments in uncon- solidated subsidiaries, at equity $46,536 $45,310 Three Months Ended March 31 1995 1994 (Thousands of Dollars) Sales $ 25,355 $ 20,894 Costs and expenses ( 24,039) ( 19,575) Net income 1,316 1,319 Amortization of excess of cost over net assets acquired ( 102) ( 204) Provision for income taxes ( 514) ( 502) Equity in income of unconsolidated subsidiaries $ 700 $ 613
(3) Investments in Unconsolidated Subsidiaries, at Equity (Continued) On March 27, 1994 Katy purchased 50% of the outstanding common stock of C.E.G.F.(USA), which purchase results in Katy owning 95% of C.E.G.F. As of March 31, 1994 the balance sheet of C.E.G.F. is included in Katy's Condensed Consolidated Balance Sheet and beginning in the second quarter of 1994 the income statement of C.E.G.F. was included in Katy's Statement of Condensed Consolidated Operations. (4) Investments, at Cost In April, 1994 management of Katy met with Katy's oil exploration joint venture partners and, based on current facts and circumstances, Katy has decided not to commit further funds to the oil exploration project and will not participate in any further activities on the site. Accordingly, in March, 1994 Katy wrote off its $6,580,000 investment. LIQUIDITY AND CAPITAL RESOURCES During the three months ended March 31, 1995 and 1994 working capital decreased $5,406,000 and increased $5,406,000, respectively. Current ratios were 1.58 to 1.00 at March 31, 1995 and 2.00 to 1.00 at December 31, 1994. Katy has authorized and expects to commit an additional $5,580,000 for capital projects during the remainder of 1995. Funding for these expenditures is expected to be accomplished substantially through use of internally generated funds from operations supplemented by short-term borrowings. Effective March 31, 1995 Katy purchased all of the outstanding shares of common stock of GC Thorsen, Inc. (GCT), a leading value-added marketer and distributor of electronic and electrical parts and accessories and nonpowered handtools. The purchase price, including acquisition costs, was approximately $24,000,000, of which $19,500,000 was financed through Katy's bank line of credit. The acquisition has been accounted for under the purchase method and the balance sheet of GCT as of March 31, 1995 has been included in Katy's Condensed Consolidated Balance Sheet. The excess of the purchase price over the fair value of the net assets acquired of approximately $4,200,000 will be amortized over 20 years. The Company and certain of its current and former direct and indirect corporate predecessors, subsidiaries and divisions have been identified by the U.S. Environmental Protection Agency and certain state environmental agencies and private parties as potentially responsible parties ("PRPs") at a number of hazardous waste disposal sites under the Comprehensive Environmental Response, Compensation and Liability Act ("Superfund") and equivalent state laws and, as such, may be liable for the cost of cleanup and other remedial activities at these sites. Responsibility for cleanup and other remedial activities at a Superfund site is typically shared among PRPs based on an allocation formula. The means of determining allocation among PRPs is generally set forth in a written agreement entered into by the PRPs at a particular site. An allocation share assigned to a PRP is often based on the PRP's volummetric contribution of waste to a site. Under the federal Superfund statute, parties are held to be jointly and severally liable, thus subjecting them to potential individual liability for the entire cost of cleanup at the site. The Company is also involved in remedial response and voluntary environmental cleanup at a number of other sites which are not currently the subject of any legal proceedings under Superfund, including certain of its current and formerly owned manufacturing facilities. Based on its estimate of allocation of liability among PRPs, the probability that other PRPs, many of whom are large, solvent, public companies, will fully pay the costs apportioned to them, currently available information concerning the scope of contamination, estimated remediation costs, estimated legal fees and other factors, the Company has recorded and accrued for indicated environmental liabilities in the aggregate amount of approximately $7,200,000. The Company expects this amount to be substantially paid over the next one to four years. Although management believes that these actions individually and in the aggregate are not likely to have a material adverse effect on Katy, further costs could be significant and will be recorded as a charge to operations when such costs become probable and reasonably estimable. Katy also has a number of product liability and workers' compensation claims pending against it and its subsidiaries. Many of these claims are proceeding through the litigation process and the final outcome will not be known until a settlement is reached with the claimant or the case is adjudicated. It can take up to 6-10 years from the date of the injury to reach a final outcome for such claims. With respect to the product liability and workers' compensation claims, Katy hasprovided for its share of expected losses beyond the applicable insurance coverage, including LIQUIDITY AND CAPITAL RESOURCES (Continued) those incurred but not reported. Such accruals are developed using currently available claim information. Such accruals, however, are management's best estimate and the ultimate cost of any individual claim can vary based upon, among other factors, the nature of the injury, the duration of the disability period, the length of the claim period, the jurisdiction of the claim and the nature of the final outcome. The incurred but not reported component of the liability was developed using actuarial techniques. On January 13, 1995, the Board of Directors adopted a Stockholder Rights Plan in which Common Stock Purchase Rights ("Rights") were distributed as a dividend at the rate of one Right for each share of Common Stock held as of the close of business on January 24, 1995. The Rights were designed to guard against (i) coercive and abusive tactics that might be used in an attempt to gain control of the Company without paying all stockholders a fair price for their shares, or (ii) the accumulation of a substantial block of stock without Board approval. The Rights Plan will not prevent takeovers, but was designed to deter coercive and abusive takeover tactics and to encourage anyone attempting to acquire the Company to first negotiate with the Board. Furthermore, the Rights also permit the Board to have some input with respect to possible future acquisitions of Company stock by the Carroll family and certain investment funds managed by Mario J. Gabelli. As of January 13, 1995 the Carroll family beneficially owned approximately 47% and the Gabelli group beneficially owned approximately 21% of the Company's Common Stock. As of May 15, 1995, the ownership of the Carroll family has not changed; the Gabelli group owns 21.82% Such Rights only become exercisable, or transferable apart from the Common Stock, ten business days after a person or group (an "Acquiring Person") acquires beneficial ownership of, or commences a tender or exchange offer for, 10% or more of the Company's Common Stock. Any additional acquisition of shares by the Carroll family or the Gabelli group which would increase their beneficial ownership in the Company's Common Stock by more than 1% above their holdings at January 13, 1995, respectively, will also make the Rights exercisable. Once exercisable, each Right not owned by an Acquiring Person, or if the Carroll family or the Gabelli group acquires additional shares then that family or group allows the Rightholder to acquire one share of the Company's Common Stock at an exercise price of $35, subject to adjustment. Thereafter, upon the occurrence of certain events (for example, if the Company is the surviving corporation of a merger with an Acquiring Person), the Rights entitle holders other than the Acquiring Person to acquire Common Stock having a value of twice the exercise price of the Right. Alternatively, upon the occurrence of certain other events (for example, if the Company is acquired in a merger or other business combination transaction in which the Company is not the surviving corporation), the Rights would entitle holders other than the Acquiring Person to acquire Common Stock of the Acquiring Person having a value twice the exercise price of the Rights. The Rights may be redeemed by the Company at a redemption price of $.01 per Right at any time until the tenth business day following public announcement that a 10% position has been acquired (or an additional 1% if by the Carroll family or Gabelli group) or ten business days after commencement of a tender or exchange offer. The Rights will expire on January 24, 2005. LIQUIDITY AND CAPITAL RESOURCES (Continued) By its terms, the Rights Plan reserves for the Board of Directors the right to amend the Plan and redeem the Rights. All the terms of the Plan, including but not limited to the exercise price of the Rights and the ownership percentages leading to a triggering event, may be amended by the Board of Directors of the Company at any time prior to the triggering of the Rights Plan's "flip-over" and "flip-in" provisions. At March 31, 1995 Katy had short and long-term indebtedness for money borrowed of $42,685,000 of which $6,716,000 represented short-term bank credit lines from banks in Germany in support of Katy's 75% owned German subsidiary (Schoen) and $19,500,000 represented short-term borrowings under Katy's domestic bank line of credit, which borrowings were used for the acquisition of GC Thorsen, Inc.. In addition, Schoen and its subsidiaries had long-term indebtedness of $5,480,000, of which $1,122,000 was current, which is also included in the total shown above. Total debt was 27.7% of total debt and equity at March 31, 1995. Katy has a line of credit with The Northern Trust Company, which was increased to an aggregate principal amount of $30,000,000 during the quarter ended March 31, 1995. The line of credit may be used for letters of credit, working capital and/or acquisitions. Katy has no guarantees outstanding on any debt of Schoen or its subsidiaries. During the first quarter of 1995, Schoen and its subsidiaries continued to incur substantial losses from operations. In 1992, management began a restructuring of Schoen. To date, this has resulted in substantial costs for the termination of employees and the curtailment of manufacturing activities. During 1993, this subsidiary entered into an accumulated deficit position and remained there during 1994 and, accordingly, Katy is required to absorb 100% of current operating losses. Such losses are being funded through short-term lines of credit in Germany. During 1994, Katy funded its previous commitments and guarantees in the aggregate amount of approximately $6,000,000 and provided an additional $300,000 loan to this subsidiary for working capital. In addition, Schoen received approval from its banks for approximately $3,900,000 of new debt to provide for working capital needs. It is intended that funds generated from operations of this subsidiary, along with available bank credit agreements, will fund future operations and that no further investment from the United States will be made. However, Schoen is continuing to realize losses from operations and no assurances can be given as to the ability of Schoen to finance its operations independently. Sales volume and order backlog remain inadequate and management continues to evaluate its options with regard to Schoen. Katy does not anticipate providing any additional funding for Schoen or any of it's subsidiaries. Management continuously reviews each of its businesses. As a result of these ongoing reviews, management may determine to sell certain companies and may augment its remaining businesses with acquisitions. When sales do occur, management anticipates that funds from these sales will be used for general corporate purposes or to fund acquisitions. Acquisitions may also be funded through cash balances, available lines of credit and future borrowings.
RESULTS OF OPERATIONS Three Months Ended March 31, 1995 Following is a summary of sales and operating income for the three months ended March 31, 1995 and 1994 by industry segment: Three Months Ended March 31 Increase (Decrease) 1995 1994 Amount Per Cent (Thousands of Dollars) Industrial Machinery $ 13,737 $ 15,581 ($ 1,844) (11.8%) Industrial Components 6,978 7,634 ( 656) ( 8.6 ) Consumer Products 17,643 15,208 2,435 16.0 Total sales $ 38,358 $ 38,423 ($ 65) ( .2%) Operating Income Percent of Sales 1995 1994 1995 1994 (Thousands of Dollars) Industrial Machinery ($ 1,387) ($ 197) ( 10.1%) ( 1.3%) Industrial Components 916 505 13.1 6.6 Consumer Products 2,017 1,751 11.4 11.5 Total operating income $ 1,546 $ 2,059 4.0% 5.4%
RESULTS OF OPERATIONS (Continued) Three Months Ended March 31, 1995 Sales were essentially even with 1994, down by only $65,000. Sales by foreign subsidiaries were $7,601,000, down $1,450,000, or 16.0% from $9,051,000 in 1994. Foreign sales, as a percentage of total sales, was 19.8% compared to 23.6% in 1994. Operating income decreased $513,000, or 24.9% from $2,059,000 in 1994 to $1,546,000 in 1995. This decrease is attributable to losses generated by the 75% owned Schoen & Cie, AG group. Exclusive of the losses from the Schoen group, Katy's remaining operations recorded operating income of $3,090,000 in 1995 compared to $2,741,000 in 1994, an increase of $349,000 or 12.7%. Industrial Machinery Group sales were lower by 11.8%. Sales increases at most operating units were more than offset by a 22.2% decrease in sales of the Schoen group which again in 1995 experienced a further decline in sales of shoe-making machinery reflecting the continuing economic uncertainty in Eastern Europe and Russia, its principal markets. Exclusive of the sales and losses generated by the Schoen group, the remaining operations in the Industrial Machinery Group reported sales of $6,681,000 in 1995 compared to $6,466,000 in 1994, an increase of $215,000 and operating income of $157,000 in 1995 compared to $484,000 in 1994, with all business reporting decreased operating income due to lower operating margins. The Schoen group has been in an accumulated deficit position since 1993, and Katy has accordingly been required to report 100% of Schoen's operating losses in Katy's results. During 1994 Katy funded its previous commitments and guarantees and wrote off or reserved all remaining investments in Schoen. Katy therefore has no material financial or investment exposure to the Schoen group. Nonetheless, Katy is required to record the Schoen group's losses in its financial statements until such time as it ceases to hold a majority ownership position. The Industrial Components Group reported increased operating income on lower sales. Increased sales were reported by all group companies. These increases were more than offset by the loss of sales of companies sold in 1994. The Group realized improvement in operating income from all businesses. The Consumer Products Group reported increased sales and operating income primarily as a result of improved sales and margins from the manufacturer of paints and stains and the exclusion in 1994 of three months of operations from C.E.G.F. (USA), which Katy now includes in its consolidated operations. For additional information on C.E.G.F. see Note 3 of Notes to Condensed Consolidated Financial Information. These increases were partially offset by lower sales and lower operating margins of the filter business. Although sales levels were essentially even with 1994 selling, general and administrative expenses increased $1,091,000 or 11.1%, primarily the result of higher sales commission expenses due to a change in product mix from noncommission sales to commission sales. RESULTS OF OPERATIONS (Continued) Interest expense decreased by $102,000 on slightly higher average borrowings as a result of lower interest rates. Interest income has decreased by $949,000 due primarily to the payment of the special dividend in August, 1994 which significantly reduced the Company's interest earning cash and cash equivalents balances. The provision for income taxes of $628,000 increased $2,492,000 from the benefit for income taxes of $1,864,000 in 1994, the result of higher taxable domestic income. The losses generated by Katy's German subsidiary continue to be ineligible for tax benefits. Equity in income of unconsolidated subsidiaries increased by $87,000, or 14%. Syratech Corporation's higher earnings in 1995 were partially offset by lower earnings of Bee Gee Holding Company and the exclusion of C.E.G.F.'s (USA) earnings. Katy acquired a 50% interest in C.E.G.F. (USA) on March 27, 1994 and their subsequent earnings are included in Katy's Statement of Condensed Consolidated Operations. For additional information on unconsolidated subsidiaries see Note 3 of Notes to Condensed Consolidated Financial Information. KATY INDUSTRIES, INC. PART II - OTHER INFORMATION Item 1. LEGAL PROCEEDINGS (a) Notice of Claim - Medford Oregon. Cost estimates for the clean-up required by the Oregon Department of Environmental Quality in this matter, referred to in Katy's Form 10-K for the year ended December 31, 1994, currently range between $2,000,000 and $3,000,000. Katy and Balteau Standard, Inc. have recently agreed to share such costs. Pursuant to such agreement, Katy will be responsible for 65% of the first $2,000,000 of such costs and 50% of such costs to the extent that they exceed $2,450,000. Item 6. Exhibits and Reports on Form 8-K (a) Reports on Form 8-K No reports on Form 8-K were filed during the quarter for which this report is filed. Signatures Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KATY INDUSTRIES, INC. Registrant DATE: May 15, 1995 By /s/John R. Prann, Jr. John R. Prann, Jr. President, Chief Executive Officer and Chief Operating Officer DATE: May 15, 1995 By /s/P. Kurowski P. Kurowski Treasurer Chief Financial Officer EX-27 2
5 3-MOS DEC-31-1995 MAR-31-1995 2,607 27,812 35,867 4,447 45,903 121,152 95,285 48,608 238,572 76,715 13,568 9,821 0 0 101,673 238,572 38,358 38,358 26,456 38,788 (39) 0 418 (809) 628 (1,437) 0 0 700 (737) (.08) (.08)
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