-----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, HFzCXeeXUVZ6j+vvxTzv3vNmspuusd/i15zqM0s9uUGn3xrJAe1k/eyFLhKROlkM MMGt+IdV4xJ7byOYeBy3iQ== 0000950135-96-002070.txt : 19960515 0000950135-96-002070.hdr.sgml : 19960515 ACCESSION NUMBER: 0000950135-96-002070 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST YEARS INC CENTRAL INDEX KEY: 0000055698 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS PLASTIC PRODUCTS [3080] IRS NUMBER: 042149581 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-07024 FILM NUMBER: 96563195 BUSINESS ADDRESS: STREET 1: ONE KIDDIE DR CITY: AVON STATE: MA ZIP: 02322-1171 BUSINESS PHONE: 5085881220 MAIL ADDRESS: STREET 1: ONE KIDDIE DR CITY: AVON STATE: MA ZIP: 02322-1171 FORMER COMPANY: FORMER CONFORMED NAME: KIDDIE PRODUCTS INC DATE OF NAME CHANGE: 19920703 10-Q 1 THE FIRST YEARS, INC. 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For The Quarter Ended March 31, 1996 - -------------------------------------------------------------------------------- Commission file number 0-7024 - -------------------------------------------------------------------------------- THE FIRST YEARS INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Massachusetts 04-2149581 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Kiddie Drive, Avon, Massachusetts 02322-1171 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (508) 588-1220 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) 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___. The number of shares of Registrant's common stock outstanding on April 30, 1996 was 4,517,742. 2 THE FIRST YEARS INC. INDEX PART I - FINANCIAL INFORMATION: Condensed Balance Sheets Page 1 Condensed Statements of Income 2 Condensed Statements of Cash Flows 3 Notes to Condensed Financial Statements 4 Management's Discussion and Analysis of Financial Condition and Results of Operations 5 PART II - OTHER INFORMATION Other information 6 SIGNATURES 6 3 THE FIRST YEARS INC. Condensed Balance Sheets ASSETS
March 31, December 31, 1996 1995 --------- ------------ (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 59,306 $ 552,568 Accounts receivable, net 16,243,208 14,191,630 Inventories 19,637,900 19,009,784 Prepaid insurance, taxes, etc. 429,148 778,074 Current deferred taxes 872,300 872,300 ----------- ----------- Total current assets 37,241,862 35,404,356 ----------- ----------- PROPERTY, PLANT, AND EQUIPMENT: Land 167,266 167,266 Building 3,741,291 3,737,861 Machinery and molds 7,002,819 6,481,504 Furniture and equipment 3,350,811 3,183,379 ----------- ----------- Total 14,262,187 13,570,010 Less accumulated depreciation 7,554,413 7,262,286 ----------- ----------- Property, plant, and equipment-net 6,707,774 6,307,724 ----------- ----------- TOTAL ASSETS $43,949,636 $41,712,080 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 133,333 $ 133,333 Short-term borrowings 8,500,000 6,200,000 Accounts payable and accrued expenses 7,355,542 8,868,187 Federal and state income taxes payable 283,600 0 ----------- ----------- Total current liabilities 16,272,475 15,201,520 ----------- ----------- LONG-TERM DEBT-Less portion due currently 66,667 100,001 ----------- ----------- DEFERRED INCOME TAXES 647,300 647,300 ----------- ----------- STOCKHOLDERS' EQUITY: Common stock 451,774 451,514 Paid-In capital 13,102 0 Retained earnings 26,498,318 25,311,745 ----------- ----------- Total stockholders' equity 26,963,194 25,763,259 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY $43,949,636 $41,712,080 =========== ===========
See accompanying notes to condensed financial statements. Page 1 4 THE FIRST YEARS INC. Condensed Statements of Income for the Three Months Ended March 31, 1996 and 1995 (Unaudited)
1996 1995 ---- ---- NET SALES $23,009,281 $15,801,777 COST OF PRODUCTS SOLD 13,947,171 9,256,243 ----------- ----------- GROSS PROFIT 9,062,110 6,545,534 SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES 6,925,847 5,157,790 ----------- ----------- OPERATING INCOME 2,136,263 1,387,744 OTHER INCOME (EXPENSES): Interest Expense (165,373) (13,433) Interest Income 1,183 8,697 ----------- ----------- INCOME BEFORE INCOME TAXES 1,972,073 1,383,008 PROVISION FOR INCOME TAXES 785,500 553,200 ----------- ----------- NET INCOME $ 1,186,573 $ 829,808 =========== =========== EARNINGS PER SHARE $0.25 $0.18 =========== =========== AVERAGE NUMBER OF SHARES OUTSTANDING 4,689,426 4,661,846 =========== ===========
See accompanying notes to condensed financial statements. Page 2 5 THE FIRST YEARS INC. Condensed Statements of Cash Flows for the Three Months Ended March 31, 1996 and 1995 (Unaudited)
1996 1995 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,186,573 $ 829,808 Adjustments to reconcile net income to net cash provided by (used for) operations: Depreciation 292,127 253,750 Provision for doubtful accounts 53,746 25,147 Increase (decrease) arising from working capital items: Accounts receivable (2,105,324) (2,264,138) Inventories (628,116) (2,098,165) Prepaid insurance, taxes, etc. 348,926 (40,978) Accounts payable and accrued expenses (1,512,645) 242,653 Federal and state income taxes - net 283,600 430,100 ----------- ----------- Net cash used for operating activities (2,081,113) (2,621,823) ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Expenditures for property, plant, and equiment (692,177) (209,992) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Common stock issued under stock option plans 13,362 10,667 Net proceeds from short-term borrowings 2,300,000 1,200,000 Repayment of industrial revenue bonds (33,334) (33,333) ----------- ----------- Net cash provided by financing activities 2,280,028 1,177,334 ----------- ----------- DECREASE IN CASH AND CASH EQUIVALENTS (493,262) (1,654,481) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 552,568 2,329,041 ----------- ----------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 59,306 $ 674,560 =========== =========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for: Interest $ 165,373 $ 13,433 =========== =========== Income taxes $ 119,600 $ 123,100 =========== ===========
See accompanying notes to condensed financial statements. Page 3 6 THE FIRST YEARS INC. NOTES TO CONDENSED FINANCIAL STATEMENTS 1. Amounts in the accompanying balance sheet as of December 31, 1995 are condensed from the Company's audited balance sheet as of that date. All other condensed financial statements are unaudited but, in the opinion of the Company, contain all normal and recurring adjustments necessary to present fairly the financial position as of March 31, 1996, and the results of operations and cash flows for the periods ended March 31, 1996 and 1995. 2. The Company has 15,000,000 shares of $.10 par value common stock with 4,517,742 and 4,515,142 shares issued and outstanding as of March 31, 1996 and December 31, 1995, respectively. On May 2, 1996 the Board of Directors authorized a $0.10 per share annual cash dividend payable on June 3, 1996 to holders of record at the close of business on May 21, 1996. 3. Earnings per share of common stock are computed on the basis of the average number of shares and common share equivalents outstanding during each quarter. Fully diluted and primary earnings per share were the same for the three months ended March 31, 1996 and 1995. 4. The results of operations for the three month period ended March 31, 1996 and 1995 are not necessarily indicative of the results to be expected for the full year. 5. During 1996, the Company borrowed various amounts up to $9,900,000 under unsecured lines of credit totaling $15,000,000 available from banks. As of March 31, 1996 a balance of $8,500,000 remained outstanding which bears interest at a weighted average rate of 7.55%. During March of 1995, the Company borrowed various amounts up to $2,500,000 of which $1,200,000 remained outstanding as of March 31, 1995. No other short-term borrowings were incurred by the Company during 1996 or the first three months of 1995. Page 4 7 Management's Discussion and Analysis of Financial Condition and Results of Operations Net sales for the first three months of 1996 were $23.0 million an increase of $7.2 million or 45.6% as compared to $15.8 million for the comparable period last year. The increase was due to new product introductions and expanded retail distribution in domestic and foreign markets. Additionally, the Company did not experience significant new product production delays in 1996 as it did in the first three months of 1995. Cost of products sold for the first three months of 1996 was $13.9 million, an increase of $4.6 million or 50.7%, as compared to $9.3 million for the comparable period last year. As a percentage of sales, cost of products sold in the first three months of 1996 increased to 60.6% from 58.6% in the comparable period of 1995. The increase was primarily due to increased sales of higher-priced, lower-margined products and licensing fees. Selling, general, and administrative expenses for the first three months of 1996 were $6.9 million, an increase of $1.7 million or 34.3% as compared to $5.2 million over such expenses for the first three months of 1995. The increase resulted primarily from costs related to increased sales volume. As a percentage of net sales, selling, general, and administrative expenses for the first three months of 1996 decreased to 30.1% from 32.6% for the comparable period in 1995. The decrease reflects the economies of scale provided by higher volume of business. Income tax expense as a percentage of pretax income approximated 40% for the first three months of 1996 and 1995. Net working capital increased by $767,000 in the first three months primarily due to profitable operations. Accounts receivable increased by $2.1 million primarily as a result of increased sales. Cash decreased by $493,000 primarily resulting from an increase in accounts receivable and a decrease in accounts payable and accrued expenses which were partially offset by an increase in short-term borrowings. Unsecured bank lines of credit aggregating $15.0 million are subject to annual renewal. Amounts outstanding under these lines are payable upon demand by the banks. During the first three months of 1996, the Company borrowed various amounts up to $9.9 million of which $8.5 million remained outstanding as of March 31, 1996. During March of 1995, the Company borrowed various amounts up to $2.5 million of which $1.2 million remained outstanding as of March 31, 1995. The Company did not incur any other short-term borrowings during the first three months of 1996 and 1995 except as noted above. Page 5 8 PART II - OTHER INFORMATION Items 1 through 5 - Not Applicable Item 6: Exhibits and Reports on Form 8-K (a) Not Applicable (b) No reports on Form 8-K have been filed during the past quarter covered by this report. SIGNATURES 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. THE FIRST YEARS INC. Registrant /s/ Benjamin Peltz Date 5/13/96 ------------------------------ Benjamin Peltz, Senior Vice President and Treasurer, Duly Authorized Officer and Principal Financial Officer Page 6 EX-27 2 FINANCIAL DATA SCHEDULE
5 1 U.S. DOLLARS 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 1 59,306 0 16,428,208 185,000 19,637,900 37,241,862 14,262,187 7,554,413 43,949,636 16,272,475 66,667 451,774 0 0 26,511,420 43,949,636 23,009,281 23,010,464 13,947,171 20,873,018 0 0 165,373 1,972,073 785,500 1,186,573 0 0 0 1,186,573 0.25 0.25
-----END PRIVACY-ENHANCED MESSAGE-----