-----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, W1oYuM+4xYDyItoLe1biRg3oH10vxLgWBKHoaT6QpwFoU0xAuBu7PBelaD7k0EqR xJrdoR4g2weQ0A9xnNKvFw== 0000902595-95-000049.txt : 19950615 0000902595-95-000049.hdr.sgml : 19950615 ACCESSION NUMBER: 0000902595-95-000049 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950131 FILED AS OF DATE: 19950314 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: KIT MANUFACTURING CO CENTRAL INDEX KEY: 0000056151 STANDARD INDUSTRIAL CLASSIFICATION: 3790 IRS NUMBER: 951525261 STATE OF INCORPORATION: CA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06257 FILM NUMBER: 95520497 BUSINESS ADDRESS: STREET 1: 530 E WARDLOW RD STREET 2: P O BOX 848 CITY: LONG BEACH STATE: CA ZIP: 90801 BUSINESS PHONE: 3105957451 MAIL ADDRESS: STREET 1: 530 EAST WARDLOW ROAD CITY: LONG BEACH STATE: CA ZIP: 90801 10-Q 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 Quarter Ended January 31, 1995 Commission file number 2-31520 KIT MANUFACTURING COMPANY - - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 95-1525261 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 530 East Wardlow Road, P.O. Box 848, Long Beach, California 90801 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (310) 595-7451 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 . APPLICABLE ONLY TO CORPORATE ISSUERS: 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. Common Stock (no par value), 1,110,934 shares outstanding as of January 31, 1995. 1 of 12 Pages PART I FINANCIAL INFORMATION -2- KIT MANUFACTURING COMPANY STATEMENTS OF INCOME (Dollars in Thousands Except Per Share Amounts) (Unaudited) Three Months Ended January 31, 1995 1994 Sales $21,851 $15,301 ----------- ---------- Costs and expenses Cost of Sales 19,643 13,403 Selling, general and administrative expense 1,793 1,449 Interest income, net (29) (17) ----------- ---------- 21,407 14,835 ----------- ---------- Income before income taxes 444 466 Provision for income taxes (Note A) 182 191 ----------- ---------- Net income $262 $275 =========== ========== Weighted average shares outstanding (Note B) 1,110,934 1,383,041 ============ ========== Net income per share (Note B) $0.24 $0.20 ============ ========== Dividends per share $ - $ - ============ ========== The accompanying notes are an integral part of these financial statements -3- KIT MANUFACTURING COMPANY BALANCE SHEETS (Dollars in thousands) January 31, October 31, 1995 1994 ----------- ----------- ASSETS (Unaudited) Cash and cash investments $1,409 $4,625 Accounts receivable, net 5,606 5,564 Notes and other receivables 547 577 Inventories: Raw materials 3,141 2,317 Work in process 1,026 1,038 Finished goods 2,683 737 ---------- --------- Total inventories 6,850 4,092 Prepaids and deferred income taxes 1,325 1,190 ---------- --------- Total current assets 15,737 16,048 Property, Plant & Equipment, net 5,770 5,762 Other Assets 124 81 ---------- --------- Total Assets $21,631 $21,891 ========== ========= LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable to bank $700 Accounts Payable 3,514 $4,486 Accrued Payroll and Related Items 1,518 2,005 Accrued Marketing Programs 760 592 Accrued Expenses 1,204 1,185 Income Taxes Payable 208 158 --------- -------- Total Current Liabilities 7,904 8,426 Deferred Income Taxes 1,308 1,308 --------- -------- Total Liabilities 9,212 9,734 --------- -------- -4- Commitments and Contingencies Shareholders' Equity: Common Stock and additional paid-in capital, issued and outstanding 1,110,934 shares in 1995 and 1994 (Note B) 1,592 1,592 Retained earnings: Balance at beginning of period 10,565 8,674 Net income for period 262 1,891 --------- -------- Balance at end of period 10,827 10,565 --------- -------- Total shareholders' equity 12,419 12,157 --------- -------- Total liabilities and shareholders' equity $21,631 $21,891 ========= ======== The accompanying notes are an integral part of these financial statements -5- KIT MANUFACTURING COMPANY STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited) For the three months ended January 31, 1995 1994 ------------ ----------- Cash flows from operating activities: Cash received from customers $21,840 $14,327 Interest received 37 47 ------------ ----------- Cash received from operations 21,877 14,374 ------------ ----------- Cash paid to suppliers and employees 25,332 20,103 Interest paid 8 30 Income taxes paid 132 32 ------------ ----------- Cash disbursed for operations 25,472 20,165 ------------ ----------- Net cash used in operating activities (3,595) (5,791) ------------ ----------- Cash flows from investing activities: Purchase of property, plant and equipment (181) (1,143) Changes in other current and non-current assets (140) (242) ------------ ----------- Net cash used in investing activities (321) (1,385) ------------ ----------- Cash flows from financing activities: Funds used to repurchase common stock (3,615) Proceeds from line-of-credit borrowings 700 6,400 Principal payments on line-of-credit (2,000) borrowings ------------ ---------- Net cash provided by financing activities 700 785 ------------ ---------- Net decrease in cash (3,216) (6,391) Cash at beginning of year 4,625 8,484 ------------ ---------- Cash at end of period $1,409 $2,093 ============ ========== -6- Reconciliation of net income to net cash used in operating activities: Net income $262 $275 ----------- --------- Adjustments to reconcile net income to net cash used in operating activities: Depreciation 136 92 Increase in accounts receivable (11) (974) Increase in inventories (2,758) (5,040) Decrease in accounts payable (1,275) (304) Increase in income taxes payable 50 160 ----------- -------- Net cash used in operating activities ($3,595) ($5,791) =========== ======== The accompanying notes are an integral part of these financial statements -7- KIT MANUFACTURING COMPANY NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) Note A - The provision or benefit for income taxes is calculated using the Company's estimated annual effective tax rate. Note B - Per share amounts are based on the weighted average number of common shares outstanding. Common stock equivalents have not been included in the computations because their effect would not be dilutive. Note C - During the period reported on, there were no sales of securities. Note D - In the opinion of management, all material adjustments which are necessary for a fair statement of financial position, results of operations and cash flows have been included in these financial statements. Note E - The results of the period are not necessarily indicative of annual results due to seasonality of the business. Note F - Financial information contained herein is unaudited. Note G - The Company is contingently liable to various financial institutions on repurchase agreements in connection with wholesale inventory financing. In general, inventory is repurchased by the Company upon default by a dealer with a financing institution and then resold through normal distribution channels. In addition, the Company is contingently liable to financial institutions for letters of credit which were established to satisfy the self-insured workers' compensation regulations of the states in which the Company conducts manufacturing operations. Management does not expect that losses, if any, from the contingencies described above will be of material importance to the financial condition or earnings of the Company. Note H - During the first quarter of fiscal 1994, the Company repurchased 361,455 shares of common stock for $10.00 per share from the family of one of the founders of KIT who died in 1989. -8- KIT MANUFACTURING COMPANY Management's Discussion and Analysis of Financial Condition and Results of Operations FINANCIAL CONDITION - JANUARY 31, 1995 COMPARED TO OCTOBER 31, 1994 Under first quarter market conditions, the Company borrows on its line of credit to increase inventory levels to provide for anticipated second quarter seasonal sales increases. Because of this, the Company's working capital increased $211,000 due to an increase in inventories and a decrease in current liabilities. The current ratio remained at 2.0:1 at January 31, 1995 in comparison to 1.9:1 at October 31, 1994. The Company's liquidity position as reflected in the current ratio described above, capital resources, including excess plant capacity, working capital, and line of credit, are considered to be adequate to provide for near term anticipated growth. RESULTS OF OPERATIONS - QUARTER ENDED JANUARY 31, 1995 COMPARED TO QUARTER ENDED JANUARY 31, 1994 Total sales for the quarter ended January 31, 1995 were $21,851,000, a 43 percent increase from sales of $15,301,000 for the same quarter of the prior year. The increase consisted of a 52 percent increase in manufactured housing sales and a 39 percent increase in recreational vehicle sales. RV sales in the Midwestern region have seen a significant increase in consumer demand for the entry-level RV product. The Western region recreational vehicle sales are up due to increased demand in both the low-end and mid-price point markets. The manufactured housing sales increase was primarily the result of the gain in manuafacturing capacity from the new production facility in Caldwell, Idaho. Cost of sales increased 47 percent from the same quarter of the prior year due to the 43 percent increase in sales volume, and increased more than two percent as a percent of sales. The decline in gross profit margins is chiefly attributed to increases in production costs at the new production facility not offset by increases in product sales prices. Selling, general and administrative expenses increased 24 percent over the same quarter of the prior year, however, declined one percent as a percent of sales. The decrease was due in large part to stringent cost saving measures instituted by the Company in the areas of marketing and administrative expenses. Net interest income for the current quarter increased 68 percent from the same quarter of the prior year. This was a consequence of a significant decrease in the average net short-term borrowings. In the first quarter of 1994, the Company used its available cash to expand its plant facilities and repurchase its common stock thereby increasing its average short-term borrowings. Net income for the three months ended January 31, 1995 was $262,000, or $0.24 per share, compared to net income of $275,000, or $0.20 per weighted average share, for the same quarter of the prior year. -9- PART II OTHER INFORMATION Item 6 (a). See Index to Exhibits on page 10. Item 6 (b). Form 8-K was not required to be filed during the quarter ended January 31, 1995. -10- 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. KIT MANUFACTURING COMPANY --------------------------------- (Registrant) DATE: March 13, 1995 By: /s/ Dan Pocapalia ----------------------------- Dan Pocapalia Chairman of the Board, Chief Executive Officer and President (Principal Executive Officer) DATE: March 13, 1995 By: /s/ Dale J. Gonzalez ----------------------------- Dale J. Gonzalez Senior Vice President and Treasurer (Principal Financial and Accounting Officer) -11- KIT MANUFACTURING COMPANY INDEX TO EXHIBITS Item: (2) Plan of acquisition, reorganization, arrangement, liquidation or succession Not applicable (4) Instruments defining the rights of security holders, including indentures Not applicable (11) Statement re computation of per share earnings Not applicable (15) Letter re unaudited interim financial information Not applicable (18) Letter re change in accounting principles Not applicable (19) Previously unfiled documents Not applicable (20) Report furnished to security holders Not applicable (23) Published report regarding matters submitted to vote of security holders Not applicable (24) Consents of experts and counsel Not applicable (25) Power of attorney Not applicable (27) Financial Data Schedule (28) Additional exhibits Not applicable -12- EX-27 2
5 This schedule contains summary financial information extracted from the quarterly financial statements for the quarter ended January 31, 1995 and is qualified in its entirety by reference to such financial statements. 1 U.S. DOLLARS 3-MOS OCT-31-1995 NOV-1-1994 JAN-31-1995 1 1,064,000 345,000 6,197,000 44,000 6,850,000 15,737,000 10,302,000 4,533,000 21,631,000 8,228,000 0 750,000 0 0 11,669,000 21,631,000 21,851,000 21,851,000 19,643,000 21,407,000 0 0 8,000 444,000 182,000 262,000 0 0 0 262,000 0.24 0.24
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