0000928606-95-000089.txt : 19950818
0000928606-95-000089.hdr.sgml : 19950818
ACCESSION NUMBER: 0000928606-95-000089
CONFORMED SUBMISSION TYPE: 10-Q
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 19950630
FILED AS OF DATE: 19950817
SROS: NONE
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MICHAELS J INC
CENTRAL INDEX KEY: 0000065596
STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-FURNITURE STORES [5712]
IRS NUMBER: 111796714
STATE OF INCORPORATION: NY
FISCAL YEAR END: 0331
FILING VALUES:
FORM TYPE: 10-Q
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-05703
FILM NUMBER: 95564970
BUSINESS ADDRESS:
STREET 1: 182 SMITH ST
CITY: BROOKLYN
STATE: NY
ZIP: 11201
BUSINESS PHONE: 7188526100
MAIL ADDRESS:
STREET 1: 182 SMITH ST
CITY: BROOKLYN
STATE: NY
ZIP: 11201
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
Commission File Number 0-5703
For Quarter ended June 30, 1995
Exact name of registrant as specified in it's charter - J. Michaels, Inc.
State or other jurisdiction of incorporation or organization - New York
I.R.S. employer identification no. - 11-1796714
Address of principal executive offices - 182 Smith Street
Brooklyn, N.Y. 11201
Registrant's telephone number, including area code - 718-852-6100
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) have been
subject to such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuers of
common stock, as of the latest practicable date. 851,282 shares of common
stock of $1.00 par value, as of June 30, 1995.
-1-
J.MICHAELS,INC. AND SUBSIDIARIES Pg 2
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amount in thousands
except per share data)
For the 3 months ended 6/30
1995 1994
Net sales $1,218 $1,506
Credit service charges 336 385
_________ _______
1,554 1,891
Cost of sales and operating expenses
Cost of sales,including buying
and occupancy expenses 557 670
Selling,general and adminstrative
expenses 876 1,005
Bad debts expense 71 84
Depreciation and amortization 32 36
________ _______
1,536 1,795
------- -------
Operating income 18 96
Other income (expense) net
Interest and dividend income 117 71
Capital gains (losses) 5 (4)
Other,net 2 19
_______ _______
124 86
-------- -------
Income before income taxes 142 182
Taxes on income 62 80
--------- -------
Net income $80 $102
========= =======
Net income per share 0.09 0.11
Weighted number of shares outstanding 851,282 851,282
Cash dividends per share 0.09 0.09
J.MICHAELS,INC. AND SUBSIDIARIES Pg3
CONSOLIDATED BALANCE SHEETS
6/30/95 6/30/94 3/31/95
ASSETS
Current Assets:
Cash and cash equivalents $6,099,251 $5,292,266 $9,057,812
Restricted cash 1,320,425 849,125 1,012,012
Available-for-sale securities 4,593,354 4,619,153 1,456,562
Customer's installment receivables net
of allowances for doubtful accounts
of $400,000 in both years 3,864,587 4,451,587 4,080,538
Other trade receivables 53,914 110,391 28,066
Prepaid income taxes 87,414 115,645 226,674
Deferred income taxes 209,691 258,866 209,691
Inventories net of LIFO reserve 755,398 849,757 667,697
Prepaid expense and other current assets 20,050 25,830 38,016
------------------------------------
Total current assets 17,004,084 16,572,620 16,777,068
Property,plant and equipment at cost
net of accumulated depreciation and
amortization (Note 3) 411,763 442,329 422,687
Assets held for lease,net of
accumulated amortization Note 3) 135,565 131,120 93,060
Deferred income taxes 44,292 10,000 44,292
------------------------------------
Total Assets $17,595,704 $17,156,069 $17,337,107
====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion,long term debt - $19,167 -
Accounts payable and accrued expenses 357,440 597,537 427,163
Short positions in marketable securities 1,320,425 849,125 1,012,012
-----------------------------------
Total current liabilities 1,677,865 1,465,829 1,439,175
Shareholders' equity 15,917,839 15,690,240 15,897,932
------------------------------------
Total Liabilities and
shareholders' equity $17,595,704 $17,156,069 $17,337,107
====================================
J. MICHAELS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)
Amount in thousands
for the 3 months
ended
6/30/95 6/30/94
Cash flow from operating activities:
Net income $80 $102
Adjustment to reconcile net income to net
cash provided by operating activities-
Depreciation 32 36
Decrease (increase) in receivables 190 122
Decrease (increase) in inventories,
prepaid expenses 70 10
Increase (decrease) in payables 239 (30)
Net cash flows from operating activities 611 240
Cash flow applied to investing activities:
Purchase of fixed assets (64) (14)
Decrease (increase) in restricted cash (308) (39)
Decrease (increase) in investments (3,120) 103
Net cash flows from (applied to)
investing activities (3,492) 50
Cash flow applied to financing activities:
Payment of cash dividends to stockholders (78) (78)
Net cash flow from (applied to) investing
activities (78) (78)
Net increase (decrease) in cash and
cash equivalents (2,959) 212
Cash and cash equivalents,
beginning of period 9,058 5,080
Cash and cash equivalents, end of period $6,099 $5,292
Notes To Consolidated Financial Statements
1. Earnings per share are computed by dividing net earnings by weighted
average number of common shares outstanding during the period.
2. The financial information presented is unaudited. Such information
reflects all adjustments, which in the opinion of management, are
necessary to present fairly the consolidated results of operations and
changes in financial position for the three months then ended.
The financial statements and related information for the three months
ended June 30, 1994 has been restated to conform to restated statements
presented in 10K filed for year ended March 31, 1995.
3. Accumulated depreciation and amortization was:
Property
Plant Leasing
Equipment Assets
At June 30, 1995 $978,011 $744,568
At June 30, 1994 $965,331 $674,976
At March 31, 1995 $956,137 $733,451
4. The Statements of Cash Flows are presented pursuant to the provisions
of Statement of Financial Accounting Standards No. 95, "Statement of Cash
Flows".
5. Shareholders' equity includes net unrealized gain (loss) on
Securities available for
sale.
At June 30, 1995 $17,944
At June 30, 1994 ($67,723)
-5-
Management's Discussion and Analysis of
Financial Structure and Results of Operation
J. Michaels, Inc. and its subsidiaries are principally engaged in the
retail sale of household furnishings, primarily on credit. The Company
also operates a retail furniture rental division in the Buffalo area.
Approximately 85% of retail furniture sales were made to revolving credit
customers.
Sales (including finance charges) for the three months decreased from the
previous year by 17.8% Net earnings decreased by 3.0%. The decrease in
sales reflects the continued weakness in regional economy. Gross margin
for the three months was 54.3% as compared to 55.5% last year. Credit
Service Charges decreased by 12.7% over the previous year.
Selling general and administrative expenses decreased by $129,000
primarily representing decreased payroll and payroll related costs.
Capital gains realized for the current quarter was $4,916. Net unrealized
gains for the quarter was $17,000.
-6-
RESULTS OF OPERATIONS Pg 7
Ratios Useful in Analyzing the Results of Operations
3 months ended
6/30/95 6/30/94
Sales, including credit service charges (in thousands) $1,554 $1,891
Percent increase (decrease) over previous year (17.8) (12.8)
Cost of sales as a percent of sales 35.8 35.4
Selling, general & administrative expenses-
as a percent of sales 56.4 53.1
Bad debt expense as a percent of sales 4.6 4.4
Depreciation and amortization as a percent of sales 2.0 1.9
Interest and dividend income as a percent of sales 7.5 3.8
Net income (in thousands) $80 $102
Net income, as a % of sales 5.1 5.4
Part II - Other Information
None
- 8 -
Signatures
Pursuant to the requirements of the securities exchanges act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
J. Michaels, Inc.
By: /s/ Martin Kasman
Martin Kasman,
Treasurer
Date: August 16, 1995
-9-
EX-27
2
ART. 5 FDS FOR 3 MONTHS ENDED 6/30/95
5
1,000
3-MOS
MAR-31-1996
JUN-30-1995
6099
4593
4264
400
755
17004
1390
978
17596
1677
0
616
0
0
0
17596
1218
1554
557
1536
0
0
0
142
62
80
0
0
0
80
.09
.09